Secretary Paulson’s proposed $700 billion rescue package is a lot of money. So much money is involved that it represents a significant portion of the US GDP. This may be why there are enough members of Congress thinking about the cost to the taxpayer to slow down the bailout bandwagon. This package, together with loans to AIG and Bear Stearns, is almost 6% of GDP. This is much larger than the 3.7% of GDP of the savings and loan bailout in the late 1980s, which some Pixies may remember. Unexpectedly however, 6% of GDP is still much less than the cost of resolving other banking crises over the last 20 years.

Year Country...........% GDP

1988 US..................3.7
1991 Finland............12.8
1991 Sweden...........3.6
1994 Mexico............19.3
1997 Japan..............24.0
1997 South Korea.....31.2
2007 US..................5.8

Congress still needs to act soon. The Washington Mutual savings and loan was seized by the FDIC, and most of its operations were sold to JPMorgan.

:spank: Back to my dungeon- do you think chrome and leather? or is PVC sexier?

A few thoughts...

Recession. I suspect we're in one already. And frankly, even if we are not, a recession isn't such a bad thing - once inawhile. It's sort of like a forest fire. Forest's need the occasionaly forest fire to eliminate all the dead branches, leaves etc, that have accumulated. By not doing that occasionally - in a controlled, quick fashion, you run the risk of having a massive fire eventually. So, bottom line, recessions are unpleasant, but controlled one is needed once in awhile.

$700M bailout. I hear you all about holding folks accountable. And I agree with that. My question is, if we don't do this. What do we do. Just let the crashing finish? I'm not a economics person, so I don't know how 'bad' it could get, or what 'bad' would really mean. But I suspect we need to do this. I think. Again, one good - overlooked thing - is that I think this problem is stopping the massive out of control home building on farm and woodland, while leaving older houses empty. Maybe this will fix that problem.

Lil's dungeon. Leather. Definitely leather.

jax, that's $700B as in billion. not million. an obscene amout of money to be sure.

Yes, the government is "insolvent" - in that the books never completely balance. But the money that comes in, goes out to pay immediate debts and there hasn't been an issue. Imagine having a government that couldn't meet payroll. Or a government that had to lay off a branch of government...say, like the FDA. Or the Department of Homeland Security. Imagine a government that couldn't afford to send out food stamps, or send military aid to Georgia.

That's what I'm talking about. That we would suddenly have to start making choices about things that were "fiat" in the past. This type of expenditure - jseal says it's 3.7% of GDP - could do that.

Chome & Leather for sure :thumbs:

Or in stead of chome, how about stainless Steel with that kind of money :69:

Please define the Gross Domestic Product that our service economy produces. :confused:

I have TOTAL confidence in all figures from our Ministry of Propa..... Production. :rolleyes:

"Manufacturing"



:rofl:

The 1969 Pixies Lixicon reads:

The Gross Domestic Product is equivalent to the most disgusting meal produced in homes around the US which is obviously Tuna Casserole. So


GDP=Tuna casserole

Stainless it is. That way I can autoclave the whole place :p With that kind of $$$ I can build a ginormous autoclave into the dungeon walls :p

:thanks: Lil
:) Now I feel so much more confident in everything, knowing that.


:kisser:

The only one who can save America now is McCain!

oops, I mean, McClaine!!! :thumbs:

Lil-in your dungeon, could you build an olympic sized pool and fill it with lime jello, please? oh and crotchless black latex (a la Michelle Pfiffer Catwoman suit) scuba diving gear?






and a bowl of whirled peas

osuche,

In 1975 a hostile senate refused to sign the money bills which gave the Australian Government the funds to operate. As a young public servant I was faced with the very real prospect of being unable to pay my rent and feed the wife and cat.

This created chaos for a couple of weeks.