How Much Will the Bailout Cost You?
September 21, 2008
FT is reporting that the cost of the bailout will be upwards of $700 Billion. That’s a lot of lettuce.
Assuming 150M taxpayers in the U.S., that works out to about $5,000 per person. That’s the right now cost. If it had to be paid for right now, it couldn’t be done. Unfortunately, the government isn’t going to pay for it right now, they’re going to finance it, putting up your productivity and acquiescence as collateral.
Those $5,000 will be compounded by invisible inflation that will mysteriously be “adjusted” away in the officially reported core inflation Index du jour, and a crushing tax burden sure to follow.
President Bush said the administration was faced with preventing the collapse of a financial “house of cards”. “People are beginning to doubt our system, people were losing confidence and I understand it’s important to have confidence in our financial system.” he said.
He said the risk of doing nothing far outweighed the risk of the package. He assured taxpayers that over time they would get a lot of their money back.
Really? We’ll get back “a lot of” our money?
Not, “all of” it? Not, “all of it, plus interest, thanks for your patience” ?
Nope, it’s sure[1] to yield “a lot of” the original principle. Which means that, by design it is a net loss proposition. I’m going to go out on a limb here: there’s not a snowball’s chance in hell that this “investment” will yield a positive, inflation-adjusted return for any taxpayer, anywhere, ever.
Taxpayers will never get any of “their money back.”
This isn’t an “investment,” it’s corporate welfare. And every last one of us should be outraged by it.
+++
1.Not actually “sure”. MayWill lose value.
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Not that I support the bailout or anything, but not all of the $700b is an “expense”. They are purchasing assets. Assets of dubious value, but assets nonetheless. Assuming that at least some of the assets are performing, some of the $700b will be recouped at some point.
It’s still a very, very bad idea though.
I am at the point where I expect this insanity and just do not see the point in getting angry anymore. As far as I am concerned our whole debt and monetary system is illigitimate because it is forced on us.
Not saying most of our society will not wake up to this scam, but regardless it makes me feel better.
I think you are missing a key part of that quote.
“People are beginning to doubt our system, people were losing confidence and I understand it’s important to have confidence in our financial system.”
Monday’s Great Fascist Bailout Update…
Monday’s updates on the Great Fascist Bailout Package designed by criminal technocrats, Ben Bernanke and Henry Paulson.
A fantastic analysis,
This is clever and nobody in the mainstream media has figured it out.
If you think the cost of this bil…