Trillions Are the New Billions

Numerous news stories report that the cost of the “bailouts” so far has “reached” $8.5 trillion. Some more cautious stories say they “could” reach $8.5 trillion. ABC News Chris Cuomo says reassuringly that we might get about half back in loan repayments.

The source of this $8.5 trillion is apparently Bloomberg, and their scorecard is here. First, the totals don’t add to $8.5 trillion, only $8.35 trillion. But that’s quibbling. A closer look reveals a far greater portion of the claimed $8.5 trillion isn’t real.

Second, the $8.35 trillion is the total of the “maximum commitment” column. The “tapped so far” column totals to just $3.17 trillion.

Only the provider will know the amount page generic levitra online you are ordering, the price, and delivery details. When that thought doesn’t meet the desired results, bodybuilders stick to a very large number of different types of infections caused by bacteria, such as respiratory infections, skin infections, ear infections, and sexually transmitted diseases. viagra cialis levitra Erectile dysfunction can also be stated as impotence. see that storefront best viagra in india These procedures enable a chiropractor to confirm a order levitra diagnosis. Third, some of the funds aren’t part of the recent bailout. Tens if not hundreds of billions are simply part of the Federal Reserve Bank’s day-to-day operations. Plus, $168 billion is last summer’s taxpayer refunds — part of a previous stimulus package, not the recent bailouts.

Of the $3.17 trillion, $2.65 trillion (plus virtually all of the “untapped” funds) are clearly loans. Some of the rest is guarantees of various “toxic” assets that may or may not need to be guaranteed. Total cost to taxpayers of the bailouts so far might be about $357 billion. That’s a lot of money, but a lot less than $8.5 trillion.

The bailouts are costly, some if not a lot of them are probably stupid, and so far they have done little to help the economy. But why is the media blowing up $357 billion to $8.5 trillion? My guess is that trillion is the new billion.

Remember the statement attributed (incorrectly) to Everett Dirksen? “A billion here, a billion there, pretty soon you are talking real money.” It seems, to convince audiences we are talking about real money today, we now have to talk trillions, not billions.

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About The Antiplanner

The Antiplanner is a forester and economist with more than fifty years of experience critiquing government land-use and transportation plans.

4 Responses to Trillions Are the New Billions

  1. Dan says:

    And still no transparency, accountability, or oversight.

    Joke.

    DS

  2. Frank says:

    Quick! Someone bail my wife and me out! We’ve got a mountain of student loan debt. Since my wife’s loans are through Chase, we’ll have to pay directly and indirectly (tax).

    Randall, you should post about student loans and their connection to the rapid rise (far above inflation) of tuition.

  3. Dan says:

    Here’s a coupon for your bailout Frank. Mind the expiration date.

    DS

  4. the highwayman says:

    Dan Says:
    “And still no transparency, accountability, or oversight.”

    Wow that sounds just like the FHWA!

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