When we said the banks would fail and trillions and trillions and trillions would be lost, I'm not sure even if we knew what that really looked like.
Well, now we know.
Goldman Sachs estimates the government would need to shell out $4 trillion or more to absorb all the banks' troubled mortgage and consumer debt.
How big is $4 trillion? It's more than one-third of the economic output of the United States in a year. It's more than twice as big as the first federal bailout and the coming economic stimulus combined. Just look at all those zeroes: $4,000,000,000,000.
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31 comments:
When the sheep finally wake up they will be out for blood.
This is probably an optimistic estimate!
I think the reason there is no true bank bailout yet is that they are trying to figure out if they actually do it ... what are the odds that they will they take the US Government and the dollar down as well?
Chilling.
DP
Here is Paul Craig Roberts on AlJazeera TV talking about the economy...
http://www.youtube.com/watch?v=VOR_3Jw0T2w&feature=subscription
The Economy is Imploding. But Obama's appointments are pushing Obama to go to war with Pakistan and escalating the war in Afghanistan
Obama's Stimulus package will lead to nuclear war.
I have started to get a really bad attitude about this country. The government lies to you and sucks up your money, makes a bunch of laws to criminalize you ... runs every aspect of your life, treats the good people like chattel... I am reduced. I have no faith in the "system". I am dissappointed and angry.
Not sure what to do, but I am thinking about it.
is housing at bottom when MSM encourages not to buy a home?
http://preview.tinyurl.com/dgzlgw
I am not a conspiracy theorist..I can understand those that are ,as the level of incompetance that our so called leaders display is truly unbelievable.
The will of the people is completely ignored at least the one's awake enough and intelligent enough to still have a will that doesn't involve a flat screen TV .
Change is coming ...but in the form of a 3rd world style country.
America your best days are behind you .
You threw god out of your schools , courts etc But are more than willing to tolerate porn ,and every other form of perversity . I think a corrupt enslaving government is appropriate .
I expect the trillion to be a coin instead of paper.
Bullshit Baffles Brains.
America, you're DEAD.
Good Riddance.
It would take tens of trillions, possibly hundreds of trillions, to bail out the banks. The big three alone are sitting on $170T of derivatives - hard to say what that means.
The US government cannot borrow that much without going bankrupt and the Fed cannot print that much without the dollar collapsing.
Anyone who thinks it's possible is either ignorant or lying. It's not hard to decide which.
Right on patrat. I feel exactly the same way!
I don't know what makes me angrier - the bastards in power or the sheep they rule who don't know or care.
Many people just learning to cook are often a bit hesitant cooking a large piece of meat. It seems so intimidating! Well, it doesn't need to be, at all. This boneless PORK ROAST is a great place to begin. All that is necessary to cook this roast is to mix some dried spices with olive oil, rub it all over the roast and put it in the oven. That's it!
Funny how Goldman turns it into a problem of government.
TWO WORDS!
GREATER DEPRESSION!
They've never cared much about us, so I guess they won't miss our business either:
BW -- Passenger numbers sliding at European airports
Passenger numbers at European airports fell nearly 8 percent in December while freight traffic plunged a fifth from a year ago, and the situation will worsen this year, officials said Monday.
Airports Council International Europe said passenger traffic was down 0.2 percent in all of 2008 from the previous year, while cargo dropped 4 percent.
But that masked a sharp slide in traffic from September on, it said, with 80 percent of airports reporting fewer flights and fewer people flying.
In December, passenger traffic decreased 7.7 percent with freight down 21.4 percent. Fewer planes were moving in and out of airports, it said, with aircraft movements falling 8.1 percent.
The group said the fast and deep fall in freight traffic was a barometer of international trade and showed that "there is scope for further decline in passenger figures."
anon 1:12 does not get it. Throwing God out did not cause the problems. Allowing the Rove and Bushies to use God to cover their corruption did. The use of religion as a weapon is a big part of what has put America in the position it is today. America's style of capitalism would have succeeded in a religiously neutral society.
Are we in an historic 'Anti-American' bubble.
Reading this blog one can think that the rest of the world is all honkie dorie, but the average US citizen is worse off then anyone else.
Is the grass really greener in places like the sterile Neherlands?
No surprise-GS wants us to cover them 100%. Watch them go bankrupt anyway.
What a scam.
Mish is right on the Heist..oh...Stimulus:
globaleconomicanalysis.blogspot.com
"...I have started to get a really bad attitude about this country..."
Wait till the vets twig to it, and identify whodunnit.
The suppression planning started many years ago. Recently we've seen domestic deployment and detention centers as glimmers of what awaits us.
The parasites are fully aware they're past the tipping point; again, they realized it years ago.
"...I am not a conspiracy theorist...the level of incompetence...is truly unbelievable..."
More and more people are recognizing this tired canard for what it really is: a cover story.
"...a corrupt enslaving government is appropriate..."
Preparing the ground for acceptance? Pffft.
"...boneless PORK ROAST is a great place to begin..."
"We can't afford to wait. We can't wait to see and hope for the best," Obama said in Elkhart, Ind., a community reeling in job losses during the recession that has defined Obama's young presidency. "We can't posture and bicker and resort to the same failed ideas that got us in into this mess in the first place."
Wow, I guess I am a total idiot because it sure seems like this stimulus package is full of the "same failed ideas that got us into this mess in the first place".
DEC 2008
Keith: No money bombs.
"...I have started to get a really bad attitude about this country..."
Wait until the banksters & crooked gov force everyone to pay carbon taxes to them. Next Ponzi scheme is unfolding to fleece the taxpayer. I'm not sure why anyone still believes anything politicians try to sell, like this Ponzi Global Warming. I mean, after all you have seen so far, are you going to fall for that bull$hit, too?
After losing his entire life's savings to disgraced fund manager Bernard Madoff, 90-year-old Ian Thiermann abandoned retirement and now works the aisles of a grocery store to make ends meet.
Handing out fliers hawking avocados and pork ribs at a supermarket in Ben Lomond, California, Thiermann is one of many facing dramatic lifestyle changes after losing their savings in Madoff's suspected $50 billion Ponzi scheme.
Thiermann wasn't even aware he had invested with Madoff until December 15, when a friend who managed his investments called him on the telephone. "He said, 'I've lost everything and you have lost everything.'" For Thiermann, that meant $750,000.
I say it again, Madoff is a frontman for a bigger and powerful group running the government. That's why he continues free. How can he post bond, if he's stolen all of his assets?
"We can't afford to wait. We can't wait to see and hope for the best," Obama said in Elkhart, Ind."
Buh buh buh the Messiah's message until a few weeks ago was all about "hope", "yes we can", "rainbows and pink unicorns". What happened?
Anonymous Anonymous said...
Bullshit Baffles Brains.
America, you're DEAD.
Good Riddance.
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The haters are out!
$4 trillion? Get out of here! Why don't you just go broke and get out of our lives Goldman?
Anonymous said...
After losing his entire life's savings to disgraced fund manager Bernard Madoff....
Disgraced? Does that make us feel better that we call him disgraced?
He still has all of his money, he isn't in jail, he walks the streets, he shops.
Disgraced is supposed to do it now?
I bet Bernie Madoff really gets upset because the Brittany watchers and the Idol watchers think he is a disgrace.
LOL
Yup, something is really fishy about Madoff. How come he's the only one "arrested"? I'd guess there should be about 20 more co-conspirators, no? Also, there is a civil settlement being talked about. No criminal trial first? No Civil trial? No witnesses? No evidence? No cross-examination? He must have pictures of Schumer with a goat! He's the financial equivalent of of a call-girl madam. And he has a huge black book.
Oh hell, let's just print up $999,000,000,000,000,000,000,000,000,000,000,000,000.00
It's all unpayable anyway, right?
Surely we can muster up a revolution in this country. Where have all the manly men gone?
Just let the POS banks fail. Who cares? Call the plutocrats' bluff. They own the system so if it goes down the crapper they'll go down with it. I'd eat ramen for the rest of my life just to see that happen.
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