$4 trillion

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"The amount of working capital you'd expect the government to take into this would be around $3 trillion to $4 trillion," said Simon Johnson, a senior fellow at the Peterson Institute for International Economics and author of its Baseline Scenario financial crisis blog.

Johnson, who until last year was the chief economist at the International Monetary Fund, said that banks will need more rounds of capital from the government because their cushion against losses is too thin. He also said that there is a need to get rid of some of the toxic assets weighing on financial institutions before they can recover.

With that in mind, he thinks that the net cost to U.S. taxpayers for a broadened bailout would be about $1 trillion to $2 trillion, or between 5% and 10% of U.S. gross domestic product. He said this figure is "in line with the experience" of other nations that have tried massive banking system restructuring.

Johnson isn't the first to estimate that the final cost of a bank bailout will be well north of $1 trillion. FBR Capital analyst Paul Miller said in November that just the top eight U.S. financial institutions alone needed at least $1 trillion in new common equity.

Quote:
The KBW Bank index has dropped 35% in January after a 50% plunge in 2008, as investors worry that the government may be forced to nationalize some banks -- and wipe out shareholders in the process. Shares of Citigroup (C, Fortune 500) and Bank of America (BAC, Fortune 500) have been particularly hard hit.

"The big banks are a hope trade right now," Johnson said

http://money.cnn.com/2009/01/27/news/bigger.bailout.fortune/
Open your wallets even further.
 
We're done....

I don't see how we can survive based on what we have already done, and what we will most likely continue to do.
 
Originally Posted By: buster
We're done....

I don't see how we can survive based on what we have already done, and what we will most likely continue to do.


If the government would get out of the way and leave things alone, we could recover fairly quickly. What they are doing will extend things out greatly just as it did during the 30's.

The current plan is not geared toward helping the populace, however. Nothing could be more clear than that looking at the "stimulus" (PORK) bill.
 
...and what happens when they "get out of the way", Tempest? Corporate fascism takes over and we're just as much toast.

We're nothing more than slaves to either "faction". I see absolutely no freedom of choice if both end up being my master. The greedy masters have made no case of merit for me to choose the free market slave trade over the "processed" mediocrity of slavery to the bureaucracy ...as predictably miserable as it will be. It is predictable.
 
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Corporate fascism takes over

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Well
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Can you give us a social pictorial on "Life according to Tempest"??

So far you've just thrown that out in vapor land of speculation. "The market will decide ..the market will decide" (visions of BIG "I don't get it - I don't get it")

Just what is your expectation of "life in Tempestdystopia". Just what are you suggestively bringing to the table ..keeping in mind that you're a mostly impotent entity bringing nothing to any table of merit??
 
So if "we're done", what does that mean???????
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What does that all entail????
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I want to hear your thoughts on that please...
 
Gary Allan ..keeping in mind that you're a mostly impotent entity bringing nothing to any table of merit?? [/quote said:
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Mori is rubbing off on you...

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I don't think we're done, just yet...

This bailout is a drop in the bucket compared to our social security and medicare liability over the next 50 years.

If no one fixes that, THEN we're done.

But the good times are for sure done, in terms of being able to have the material quality of life we've had for the past 2 decades. IMO, that's a good thing. People who can't afford it, don't need a new TV, stereo, and vehicle every 5 years.
 
Bailouts are political. We have discussed them enough. We need to move on to something new.
 
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