2008-10-02

Bailout Comparison Stats

Market Capitalization of all publicly traded banks and financial services companies: $900 billion
TARP bailout: $700 billion
Value of all delinquent loans in US: $500 billion

How is the $700 billion going to be invested?  Why not just buy all the delinquent loans, or better yet, socialize all the banks?  At least that model involves an understandable purchase of *equity*.  The main problem with the current plan is that how the money will be "invested" is not clear.

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