Putting the Credit Crisis Bailout in Perspective

Two posts from The LRC Blog give us a bit of perspective on how much money has been spent or pledged so far to bailout the financial system.

1. Just How Much Is the Bailout?

Jim Bianco of Bianco Research crunched the inflation adjusted numbers. The bailout has cost more than all of these big budget government expenditures – combined:

• Marshall Plan: Cost: $12.7 billion, Inflation Adjusted Cost: $115.3 billion
• Louisiana Purchase: Cost: $15 million, Inflation Adjusted Cost: $217 billion
• Race to the Moon: Cost: $36.4 billion, Inflation Adjusted Cost: $237 billion
• S&L Crisis: Cost: $153 billion, Inflation Adjusted Cost: $256 billion
• Korean War: Cost: $54 billion, Inflation Adjusted Cost: $454 billion
• The New Deal: Cost: $32 billion (Est), Inflation Adjusted Cost: $500 billion (Est)
• Invasion of Iraq: Cost: $551b, Inflation Adjusted Cost: $597 billion
• Vietnam War: Cost: $111 billion, Inflation Adjusted Cost: $698 billion
• NASA: Cost: $416.7 billion, Inflation Adjusted Cost: $851.2 billion

TOTAL: $3.92 trillion

2. What $315 Billion Looks Like

The dark spot at the bottom is a car.

And each of these illustrate only a portion of the currently estimated $7.76 Trillion cost. Not to mention the huge stimulus package being promised by the incoming Obama administration, one that will certainly cost many hundreds of billions of dollars more.

The government and the Fed are acting like drunks on a weekend binge. Sooner or later, the party will end. You and I, our children and our grandchildren will be expected to clean up after George, Ben, Henry, Timmy and Barack.

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