Comments on: The Credit Crisis: The Largest Outlay In American History http://www.ritholtz.com/blog/2009/08/the-credit-crisis-the-largest-outlay-in-american-history/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Wed, 15 Feb 2012 00:33:57 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: Sackerson http://www.ritholtz.com/blog/2009/08/the-credit-crisis-the-largest-outlay-in-american-history/comment-page-1/#comment-201860 Sackerson Sat, 08 Aug 2009 10:19:13 +0000 http://www.ritholtz.com/blog/?p=32457#comment-201860 Is the final bubble, the "full faith and credit" of sovereign governments? Is the final bubble, the “full faith and credit” of sovereign governments?

]]> By: pmorrisonfl http://www.ritholtz.com/blog/2009/08/the-credit-crisis-the-largest-outlay-in-american-history/comment-page-1/#comment-201858 pmorrisonfl Sat, 08 Aug 2009 08:40:05 +0000 http://www.ritholtz.com/blog/?p=32457#comment-201858 PatG I agree you/we (born in 62) Boomers can take credit for funding bridges and schools. But you overlook the fact that USG and most of the rest of US corporate leadership are Boomers. If USG is the problem, you cannot avoid blaming the Boomers who run it (yes, there are leftovers from previous generations, but the Boomers continue to set the agenda, as they always have in the life stage they were in). PatG I agree you/we (born in 62) Boomers can take credit for funding bridges and schools. But you overlook the fact that USG and most of the rest of US corporate leadership are Boomers. If USG is the problem, you cannot avoid blaming the Boomers who run it (yes, there are leftovers from previous generations, but the Boomers continue to set the agenda, as they always have in the life stage they were in).

]]> By: alfred e http://www.ritholtz.com/blog/2009/08/the-credit-crisis-the-largest-outlay-in-american-history/comment-page-1/#comment-201835 alfred e Sat, 08 Aug 2009 02:48:15 +0000 http://www.ritholtz.com/blog/?p=32457#comment-201835 @ Pat G: agree. Good comments. I too am a "Boomer". But one that was fortunate enough to enjoy the brief MERITOCRACY phase of our recovery from the GD and WWII. Short lived. At least that was my perception. Today, I'd be dog meat. Back to normal. SNAFU. FUBAR. Funny how that works. @ Pat G: agree. Good comments. I too am a “Boomer”. But one that was fortunate enough to enjoy the brief MERITOCRACY phase of our recovery from the GD and WWII. Short lived. At least that was my perception. Today, I’d be dog meat.

Back to normal. SNAFU. FUBAR.

Funny how that works.

]]> By: km4 http://www.ritholtz.com/blog/2009/08/the-credit-crisis-the-largest-outlay-in-american-history/comment-page-1/#comment-201827 km4 Sat, 08 Aug 2009 02:13:10 +0000 http://www.ritholtz.com/blog/?p=32457#comment-201827 The American economy summed up best here Dear Mr. Fantasy ( Traffic ) http://www.youtube.com/watch?v=7_nwbTeIN4Y&feature=related The American economy summed up best here

Dear Mr. Fantasy ( Traffic )
http://www.youtube.com/watch?v=7_nwbTeIN4Y&feature=related

]]> By: Thor http://www.ritholtz.com/blog/2009/08/the-credit-crisis-the-largest-outlay-in-american-history/comment-page-1/#comment-201816 Thor Sat, 08 Aug 2009 01:45:11 +0000 http://www.ritholtz.com/blog/?p=32457#comment-201816 wait - I'm only 37. Ugh, I knew the day would come when I'd start forgetting how old I was, I just didn't expect it so SOON :-( wait – I’m only 37. Ugh, I knew the day would come when I’d start forgetting how old I was, I just didn’t expect it so SOON :-(

]]> By: Thor http://www.ritholtz.com/blog/2009/08/the-credit-crisis-the-largest-outlay-in-american-history/comment-page-1/#comment-201815 Thor Sat, 08 Aug 2009 01:43:19 +0000 http://www.ritholtz.com/blog/?p=32457#comment-201815 PatG - I agree - I'm 38 and I don't think my generation is all that special. The original latchkey kids who became Slackers and now, for the most part, just don't care anymore. I'm used to be surprised at people older or younger than myself who seem shocked by the scandals in government, or who are just now realizing what a scan wall street and congress turned out to be - people my own age I think, have always thought that that game has been rigged. PatG – I agree – I’m 38 and I don’t think my generation is all that special. The original latchkey kids who became Slackers and now, for the most part, just don’t care anymore. I’m used to be surprised at people older or younger than myself who seem shocked by the scandals in government, or who are just now realizing what a scan wall street and congress turned out to be – people my own age I think, have always thought that that game has been rigged.

]]> By: nc http://www.ritholtz.com/blog/2009/08/the-credit-crisis-the-largest-outlay-in-american-history/comment-page-1/#comment-201786 nc Sat, 08 Aug 2009 00:14:38 +0000 http://www.ritholtz.com/blog/?p=32457#comment-201786 The strange conclusion implied by this chart is that, at least in terms of costs, an unregulated financial industry is far more of a threat to this country than terrorists, communists or nazis could ever hope to be. Perhaps we should have a new Global War on Investment Banking? In response to Franklin411: Yes, some of the bailout money will be paid back; but also, some of the money spent on war and space programs finds its way back, through taxes, for example, right? And I'm sure the Louisiana purchase must have paid for itself many times over by now. So the comparisons are not exact, but it's still useful. @ Ned Baker: Expanding the monetary base IS a cost, one that is paid by all holders of dollars who will eventually see a decrease in purchasing power. @ASE81: re spending as a % of GDP, good point, however, it is not so easy to use GDP as a constant measure over history. This topic of cost comparisons was discussed in an earlier Big Picture post from June that some of you may be interested in revisiting for the great comments: http://www.ritholtz.com/blog/2009/06/bailout-costs-vs-big-historical-events/ The strange conclusion implied by this chart is that, at least in terms of costs, an unregulated financial industry is far more of a threat to this country than terrorists, communists or nazis could ever hope to be. Perhaps we should have a new Global War on Investment Banking?

In response to Franklin411:
Yes, some of the bailout money will be paid back; but also, some of the money spent on war and space programs finds its way back, through taxes, for example, right? And I’m sure the Louisiana purchase must have paid for itself many times over by now. So the comparisons are not exact, but it’s still useful.

@ Ned Baker:
Expanding the monetary base IS a cost, one that is paid by all holders of dollars who will eventually see a decrease in purchasing power.

@ASE81:
re spending as a % of GDP, good point, however, it is not so easy to use GDP as a constant measure over history.

This topic of cost comparisons was discussed in an earlier Big Picture post from June that some of you may be interested in revisiting for the great comments:

http://www.ritholtz.com/blog/2009/06/bailout-costs-vs-big-historical-events/

]]> By: Pat G. http://www.ritholtz.com/blog/2009/08/the-credit-crisis-the-largest-outlay-in-american-history/comment-page-1/#comment-201774 Pat G. Fri, 07 Aug 2009 23:50:23 +0000 http://www.ritholtz.com/blog/?p=32457#comment-201774 I wanted to add, adults born in 1984 could have had children by 2005 or even sooner. The greatest bailouts this country has ever known occured after that. So they have added to their children's woes and those of their grandchildren too. Don't blame it all on us (baby boomers). I'm willing to allow our generation to take some of the blame but not ALL of it. I wanted to add, adults born in 1984 could have had children by 2005 or even sooner. The greatest bailouts this country has ever known occured after that. So they have added to their children’s woes and those of their grandchildren too. Don’t blame it all on us (baby boomers). I’m willing to allow our generation to take some of the blame but not ALL of it.

]]> By: Pat G. http://www.ritholtz.com/blog/2009/08/the-credit-crisis-the-largest-outlay-in-american-history/comment-page-1/#comment-201771 Pat G. Fri, 07 Aug 2009 23:44:09 +0000 http://www.ritholtz.com/blog/?p=32457#comment-201771 @ Thor The point is that this blame game between generations is exactly what the politicians want as it takes the heat off of them. Between 2005 and 2007 when housing prices were going through the stratosphere and refinancings to fuel consumption were a daily occurence adults who were 21 and consequently born in 1984 came 20 years after the last official year of the baby boom generation. Now, I'm not saying that baby boomers didn't take part in the 2005-2007 fiasco but to infer that it was ALL our fault is simply wrong. @ Thor

The point is that this blame game between generations is exactly what the politicians want as it takes the heat off of them. Between 2005 and 2007 when housing prices were going through the stratosphere and refinancings to fuel consumption were a daily occurence adults who were 21 and consequently born in 1984 came 20 years after the last official year of the baby boom generation. Now, I’m not saying that baby boomers didn’t take part in the 2005-2007 fiasco but to infer that it was ALL our fault is simply wrong.

]]> By: JustinTheSkeptic http://www.ritholtz.com/blog/2009/08/the-credit-crisis-the-largest-outlay-in-american-history/comment-page-1/#comment-201768 JustinTheSkeptic Fri, 07 Aug 2009 23:35:49 +0000 http://www.ritholtz.com/blog/?p=32457#comment-201768 Everything is such a disconnect. It is like rocket scientist trying to make breakfast, they disprerse without even a scramble. The bomb comes only when the private sector has had enough, (the monied people buying bonds, etc.) and since the public sector keeps placating them with stimulus and montary chicanary...party on Garth! Everything is such a disconnect. It is like rocket scientist trying to make breakfast, they disprerse without even a scramble. The bomb comes only when the private sector has had enough, (the monied people buying bonds, etc.) and since the public sector keeps placating them with stimulus and montary chicanary…party on Garth!

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