Comments on: Adding Up the Bailout Total http://www.ritholtz.com/blog/2009/03/adding-up-the-bailout-total/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Sun, 21 Mar 2010 16:15:50 -0400 http://wordpress.org/?v=2.9.2 hourly 1 By: Investradamus http://www.ritholtz.com/blog/2009/03/adding-up-the-bailout-total/comment-page-1/#comment-158867 Investradamus Wed, 01 Apr 2009 17:38:56 +0000 http://www.ritholtz.com/blog/?p=22903#comment-158867 How is it possible to have such a MASSIVE variance in both the allocation limit and current amount figures?? For example, when comparing this one from CNN to the Bloomberg article and to the excel spreadsheet Mr. Ritholtz posted in Dec. ( http://www.ritholtz.com/blog/2008/12/calculating-the-total-bailout-costs/), CNN lists the Commercial Paper Funding Facility allocation limit as $1.4 trillion while the other two list it as $1.8 trillion . Thats a $400 billion difference! Another example, the Bloomberg and excel spreadsheet both list the allocation limit for Term Auction Facility @ $900 billion, yet CNN uses a figure of $600 billion. How is it possible for these to vary by hundreds of billions of dollars? I would expect the "current amount" to vary, but do we not even know how much money we are agreeing to throw at this anymore?? Any clarification would be much appreciated. Regardless of the differences though, all of them have a total that is seriously frightening. How is it possible to have such a MASSIVE variance in both the allocation limit and current amount figures?? For example, when comparing this one from CNN to the Bloomberg article and to the excel spreadsheet Mr. Ritholtz posted in Dec. ( http://www.ritholtz.com/blog/2008/12/calculating-the-total-bailout-costs/), CNN lists the Commercial Paper Funding Facility allocation limit as $1.4 trillion while the other two list it as $1.8 trillion . Thats a $400 billion difference! Another example, the Bloomberg and excel spreadsheet both list the allocation limit for Term Auction Facility @ $900 billion, yet CNN uses a figure of $600 billion. How is it possible for these to vary by hundreds of billions of dollars? I would expect the “current amount” to vary, but do we not even know how much money we are agreeing to throw at this anymore?? Any clarification would be much appreciated. Regardless of the differences though, all of them have a total that is seriously frightening.

]]> By: cdskiller http://www.ritholtz.com/blog/2009/03/adding-up-the-bailout-total/comment-page-1/#comment-158532 cdskiller Tue, 31 Mar 2009 14:57:37 +0000 http://www.ritholtz.com/blog/?p=22903#comment-158532 Almost $3 trillion, so far. Wow. As soon as it became clear that Bear was going down, and that a banruptcy at Bear would reveal that EVERY major financial institution in the United States had engaged in the same practices and was going to experience a similar level of crisis- and, let's be honest- the PREVENTION of disclosure of the messy details and systemic cancer was the PRIMARY motivational factor behind the bailout of Bear- when it became clear that that had to be avoided at all costs, the government should have immediately bought ENORMOUS SHORT OPTIONS on U.S. financials. Instead of Paulson making all that money, WE COULD HAVE MADE IT, and used those profits to pay for the bailouts. (wildbeastof finance.blogspot.com) Almost $3 trillion, so far. Wow. As soon as it became clear that Bear was going down, and that a banruptcy at Bear would reveal that EVERY major financial institution in the United States had engaged in the same practices and was going to experience a similar level of crisis- and, let’s be honest- the PREVENTION of disclosure of the messy details and systemic cancer was the PRIMARY motivational factor behind the bailout of Bear- when it became clear that that had to be avoided at all costs, the government should have immediately bought ENORMOUS SHORT OPTIONS on U.S. financials.
Instead of Paulson making all that money, WE COULD HAVE MADE IT, and used those profits to pay for the bailouts. (wildbeastof finance.blogspot.com)

]]> By: worth http://www.ritholtz.com/blog/2009/03/adding-up-the-bailout-total/comment-page-1/#comment-158527 worth Tue, 31 Mar 2009 14:43:57 +0000 http://www.ritholtz.com/blog/?p=22903#comment-158527 Who f'd this all up? "I" did - white, college-educated male, mid-career. Let's fire every single person in management who fits that description (which, admittedly, would probably eliminate about 80+% of the people in those positions) and start over with a management demographic that's 80+% comprised of women, minorities, and college optional. The women? Far more risk-averse than men, and far less willing to screw everyone just for a few more bucks in their purses. The minorities? Far less entitled than whites. The education? We ALL know that some of the smartest, common sensest, street-smart people we know never graduated from college. Sure, they may have attended for awhile, but didn't finish, or maybe never started at all. Who f’d this all up? “I” did – white, college-educated male, mid-career.
Let’s fire every single person in management who fits that description (which, admittedly, would probably eliminate about 80+% of the people in those positions) and start over with a management demographic that’s 80+% comprised of women, minorities, and college optional.
The women? Far more risk-averse than men, and far less willing to screw everyone just for a few more bucks in their purses.
The minorities? Far less entitled than whites.
The education? We ALL know that some of the smartest, common sensest, street-smart people we know never graduated from college. Sure, they may have attended for awhile, but didn’t finish, or maybe never started at all.

]]> By: Stuart http://www.ritholtz.com/blog/2009/03/adding-up-the-bailout-total/comment-page-1/#comment-158513 Stuart Tue, 31 Mar 2009 14:10:41 +0000 http://www.ritholtz.com/blog/?p=22903#comment-158513 Beginning to feel like we're all looking at this from the inside of the Truman show, run by the madhatter. Surreal. Beginning to feel like we’re all looking at this from the inside of the Truman show, run by the madhatter. Surreal.

]]> By: danm http://www.ritholtz.com/blog/2009/03/adding-up-the-bailout-total/comment-page-1/#comment-158489 danm Tue, 31 Mar 2009 12:34:15 +0000 http://www.ritholtz.com/blog/?p=22903#comment-158489 Iceland not out of the woods yet: http://www.vanityfair.com/politics/features/2009/04/iceland200904 Iceland not out of the woods yet:

http://www.vanityfair.com/politics/features/2009/04/iceland200904

]]> By: danm http://www.ritholtz.com/blog/2009/03/adding-up-the-bailout-total/comment-page-1/#comment-158476 danm Tue, 31 Mar 2009 12:08:28 +0000 http://www.ritholtz.com/blog/?p=22903#comment-158476 As for Iceland, I'm not sure they've seen the worst yet. When the musical bailouts end, that's when Iceland could lose its seat and WSHTF2. As for Iceland,

I’m not sure they’ve seen the worst yet. When the musical bailouts end, that’s when Iceland could lose its seat and WSHTF2.

]]> By: Mark E Hoffer http://www.ritholtz.com/blog/2009/03/adding-up-the-bailout-total/comment-page-1/#comment-158473 Mark E Hoffer Tue, 31 Mar 2009 12:00:53 +0000 http://www.ritholtz.com/blog/?p=22903#comment-158473 cwf, no stupid Questions, only Answers can betray Stupidity.. yours is a good Q:, though, to answer it w/ "That's not the Gameplan", might not be a good answer.. further, there are many rational solutions to 'this problem' that are not being undertaken.. thereby, one has to begin asking: "What is the Undertaker doing?" cwf,

no stupid Questions, only Answers can betray Stupidity..

yours is a good Q:, though, to answer it w/ “That’s not the Gameplan”, might not be a good answer..

further, there are many rational solutions to ‘this problem’ that are not being undertaken..

thereby, one has to begin asking: “What is the Undertaker doing?”

]]> By: danm http://www.ritholtz.com/blog/2009/03/adding-up-the-bailout-total/comment-page-1/#comment-158472 danm Tue, 31 Mar 2009 11:58:41 +0000 http://www.ritholtz.com/blog/?p=22903#comment-158472 Anybody have any idea of the costs of dealing with failing banks if we did not bail them out? I’m curious about actual estimates for FDIC payouts and liquidation etc. I suppose it would be hard to estimate without knowing just how many banks are actually close to going under. ---------------------- Just go take a look at a few balance sheets and you'll see the level of exposure to real estate and CRE. And CRE is only starting to do down. Much more pain coming! Anybody have any idea of the costs of dealing with failing banks if we did not bail them out? I’m curious about actual estimates for FDIC payouts and liquidation etc. I suppose it would be hard to estimate without knowing just how many banks are actually close to going under.

———————-
Just go take a look at a few balance sheets and you’ll see the level of exposure to real estate and CRE. And CRE is only starting to do down. Much more pain coming!

]]> By: danm http://www.ritholtz.com/blog/2009/03/adding-up-the-bailout-total/comment-page-1/#comment-158470 danm Tue, 31 Mar 2009 11:53:47 +0000 http://www.ritholtz.com/blog/?p=22903#comment-158470 Who do you think they’ll hire? Who has experience running banks? Why guess what–there happen to be thousands of bankers with plenty of experience running things into the ground. --------------------- I'm sorry but there are thousands of bankers out there who could have done a great job but were not given the time of day because they did not drink the Kool Aid. They pushed aside because they were not "team players". Who do you think they’ll hire? Who has experience running banks? Why guess what–there happen to be thousands of bankers with plenty of experience running things into the ground.
———————
I’m sorry but there are thousands of bankers out there who could have done a great job but were not given the time of day because they did not drink the Kool Aid. They pushed aside because they were not “team players”.

]]> By: r http://www.ritholtz.com/blog/2009/03/adding-up-the-bailout-total/comment-page-1/#comment-158468 r Tue, 31 Mar 2009 11:31:10 +0000 http://www.ritholtz.com/blog/?p=22903#comment-158468 ...almost = to GDP according to bloomberg "Financial Rescue Approaches GDP as U.S. Pledges $12.8 Trillion" http://www.bloomberg.com/apps/news?pid=20601087&sid=armOzfkwtCA4&refer=home must be good news, futures are up this AM …almost = to GDP according to bloomberg

“Financial Rescue Approaches GDP as U.S. Pledges $12.8 Trillion”

http://www.bloomberg.com/apps/news?pid=20601087&sid=armOzfkwtCA4&refer=home

must be good news, futures are up this AM

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