The Mudcat Café TM
Thread #114542   Message #2446247
Posted By: GUEST,heric
20-Sep-08 - 10:06 PM
Thread Name: BS: Bad debts for sale
Subject: RE: BS: Bad debts for sale
How's my math? I'm just trying to keep perspective.

I think there are about 100,000,000 homes in the US.
The feds intend to recoup lots of a $700 billion expenditure, so call it $300 billion.

That means they hope to spend about $3,000 per home, (after recoupment), and no more than $7,000? (Plus set up a new bureaucracy.)

But, as Donuel says - double that for interest on the new debt.

But then again, as Amos says (and implies) the bad debts can be expected to increase rapidy from today's estimates, due to multiple negative feedback loops (and lying!) (Alt-A no-doc loans haven't even hit yet, credit card defaults haven't hit yet, commercial real estate defaults haven't hit yet, etc.)

But, then again, we get to keep our 401K's floating for many more months. (80 billion kept us flat for a week, right?)

But, then again, if the financial services sector last year was 40% of all corporate profits, next year the market collapses again anyway, right? (Instead of collapsing just before an election.)

But, then again, the bad debt itself is already known to be far, far in excess of $700,000 right?

Is this stimulus somewhat like an injection of heroin?

I don't know. But I'm keeping my deer antler button.