$1 Trillion in Perspective
Reports have it that the U.S. federal government might spend $1 trillion bailing out financial services firms. That’s about $7,750 per U.S. family, or $2,500 per person.
That’s a net present value calculation – the amount of money you would have to put in an interest bearing account today to cover all future expenses. Running this through the WashingtonWatch.com calculator, I assumed payouts would occur over a period of ten years, which may push the estimate a little low.
There’s almost no way that the government can tax that out of us, and instead it will likely inflate the currency significantly to cover this commitment. Watch for a bigger collapse later if the government moves the country’s entire financial system further out on the limb to grab a hold of these imperiled financial services providers.
Oops. Too bad.