The cost of the "bailout" is
NOT $700bn.... the US taxpayers gets lots of assets in exchange which may actually be worth a lot more than $700bn if held till maturity. Given the financial turmoil at the moment the US government may be the only balance sheet that has the luxury of being able to hold them to maturity. In fact the US tax payer could make a killing out of this.
Read or listen to the Buffet interview on CNBC a couple of days ago... hard to argue he is a man that doesn't know a thing or two about investing.
Also the last time a scheme like this was set up the US government ended up making money out of it. I would advise against listening to the politicalisation of this process with idiotic senators in the US who don't have a clue what the alternative scenario looks like but are more interested in forwarding their own careers. In my opinion there is a 95% chance these scheme will be approved one way or another in the next couple of days... if it doesn't then severe recession here we come... and 15-20% of the FTSE in a day.
GETTING THIS BILL PASSED IS PROBABLY THE SINGLE MOST IMPORTANT EVENT FOR YOUNG WANABEES HAPPENING AT THE MOMENT.....there is a small chance a group of politicians with no financial background could screw it up.... if this does not happen it will push out the pilot job recovery out at least another 1-2 years....and yet some folks on this form still think economics and markets don't matter
