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 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.