Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
$7.4 Trillion and counting
Old 11-24-2008, 07:50 AM   #1
Thinks s/he gets paid by the post
OAG's Avatar
 
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,598
$7.4 Trillion and counting

Wow, 50% of GDP for last year spent thus far in the "Bail-outs" of 2008. I doubt it is over yet. The speech today is rumored to have a price tag of $1 trillion to add to that so by night fall today we will either have spent or earmarked to spend $8.4 Trillion - So I guess the National Debt will touch $20 Trillion sometime real soon.

Bloomberg.com: Exclusive
__________________

__________________
Vietnam Veteran, CW4 USA, Retired 1979
OAG is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 11-24-2008, 08:12 AM   #2
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 1,543
all of the bailouts are loans most of which or all of which will be paid back. not like the government is giving free money. and the way t-bills are the government is making a nice profit as well
__________________

__________________
al_bundy is offline   Reply With Quote
Old 11-24-2008, 08:15 AM   #3
Thinks s/he gets paid by the post
OAG's Avatar
 
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,598
So the bigger the National Debt is the more money we make? Is this "voodoo" economics?
__________________
Vietnam Veteran, CW4 USA, Retired 1979
OAG is offline   Reply With Quote
Old 11-24-2008, 09:06 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Gone4Good's Avatar
 
Join Date: Sep 2005
Posts: 5,381
Quote:
Originally Posted by OAG View Post
So the bigger the National Debt is the more money we make? Is this "voodoo" economics?
More like "Hedge Fund" economics.

But I agree with al . . . the story is needlessly alarmist, and somewhat disingenuous. A big portion of that $7.4T are US Dollar swaps with foreign governments designed to keep the financial system liquid. Another big chunk is the backing of A1/P1 Commercial Paper which has an exceedingly low default risk. While some of it (like the $30B of Bear Stearn's assets) is much higher risk and will result in losses, it is wrong to gin up fear that 50% of US GDP has been "Spent" so far.
__________________
Gone4Good is offline   Reply With Quote
Old 11-24-2008, 09:55 AM   #5
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 1,543
government is selling t bills and paying very low rates to borrow money. 3.23% for 10 year notes and almost 0% for some shorter term debt and then lending this money buy buying stock in banks and finance companies that pay 5% - 12% depending on LIBOR and other factors. Citi is paying 8%. The terms are for a few years and then the principal has to be paid back which theoretically means that part of the national debt will be repaid in a short amount of time.

This is very different from the late 1980's early 1990's when the deficit was 6% of GDP and was used for government spending
__________________
al_bundy is offline   Reply With Quote
Old 11-24-2008, 10:04 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
HFWR's Avatar
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 12,964
Seven trillion and one, seven trillion and two...

Dang, lost count! One, two, three...
__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline   Reply With Quote
Old 11-24-2008, 05:49 PM   #7
Recycles dryer sheets
 
Join Date: Aug 2005
Posts: 127
Amusing, a government that can't stop overspending bailing out business, that can't stop over spending loaning to people, who can't stop over spending.
__________________

__________________
If you think nobody cares whether you're alive or dead, try missing a couple of mortgage payments.
kowski is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
21 months and counting tanthony Hi, I am... 3 08-03-2008 11:45 AM
Counting Down and Looking for Input. Can we do it? JanetCK Hi, I am... 16 05-01-2008 04:41 PM
The $6 Trillion Bubble twaddle FIRE and Money 53 01-24-2008 01:36 PM
Counting... cj Other topics 16 12-07-2005 09:45 AM
The $4.7 Trillion Pyramid Eagle43 FIRE and Money 2 06-29-2005 09:59 AM

 

 
All times are GMT -6. The time now is 07:45 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.