Why $700 billion for the bailout? It's a big number

markh · #1 (**permalink**) 09-28-2008, 02:42 PM

Quote:

In fact, some of the most basic details, including the $700 billion figure Treasury would use to buy up bad debt, are fuzzy.

"It's not based on any particular data point," a Treasury spokeswoman told Forbes.com Tuesday. "We just wanted to choose a really large number."

Holy shit. I heard this a little earlier and couldn't believe it. A look at Forbes and there it is. This whole thing is one huge circle jerk, they have no idea what's going on or what to do about it. That means the answer is to send "a really large number" of public dollars to these private companies. Maybe they should dream up some new "exotic financial instruments" and get out of trouble on their own. BTW, isn't "exotic financial instrument" just another name for scam? It sure sounds like it if we send Wall Street public money.

markh · #2 (**permalink**) 10-01-2008, 01:54 PM

The View from Main Street | WBUR and NPR's On Point with Tom Ashbrook

I'll post this here instead of starting another thread that gets ignored.

I did hear another economist this morning, who used to work for the Federal Reserve, repeat that nobody really had any idea why they picked $700 billion other than it had to be a lot of money to ease fears. Seems like a great way to run the bailout. At least the new bill also doles it out in pieces rather than a lump sum.

In this show, Stein paraphrases Churchill; "In peacetime, never has so much been stolen from so many by so few." Meaning Wall Street sure suckered us in on this. He also proposes a bottom up rescue plan to help people stay in houses rather than the top down model. Sorry, they don't have transcripts, at least not that I could see.

stevenl · #3 (**permalink**) 10-01-2008, 02:18 PM

Why didnt they just say 1 trillion? that would of really sent shockwaves.

bob haller · #4 (**permalink**) 10-01-2008, 04:44 PM

Quote:

Originally Posted by stevenl

Why didnt they just say 1 trillion? that would of really sent shockwaves.

that will be the ultimate number, goverment is great at low balling costs

garypen · #5 (**permalink**) 10-01-2008, 05:58 PM

One MILLION dollars!!!!

NpT · #6 (**permalink**) 10-01-2008, 08:42 PM

its 5 trillon , but thats still a lowball bullshit number , Just know this its more than we can ever afford , hopefully the world keeps buying into this ponzi scheme ( wall street) or the US is in for some very ruff times .

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