Thursday, October 02, 2008

Checking the hole cards one more time....

Okay, so the US Government didn't quite go all in yet. But I thought it was interesting that when the no vote came through on the $700 billion bailout, the Dow Jones Industrial Average dropped 777 points. The next morning, it was reported that the loss in the market meant the US economy lost $1.2 trillion just in that day. Which suddenly that $700 billion seem a bit small.

So let's play with that ratio a little.

So if -777 points = -1.2 trillion dollars
700 billion dollars = 400 points

So if that bailout money were directly injected into the economy, that would theoretically amount to an increase of 400 points. A pretty good increase for a single day.

But what about the next day?

If the DJIA is sitting at 10,000 points and we bring the above ratio into this, then those 10,000 points would equal $17 trillion.

Billions, trillions... Gah. These numbers are way to big. Let's shrink the economy WAAAY down.

I hereby declare that the entire US economy is valued at $100.

Good old Ben.

Now, if my math is right - which is always a risky assumption, I'll admit - that puts the bailout package at about $4.12.

One quarter, one dime, one nickel, and two pennies.

I hope they don't spend it all in one place.


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At 10/02/2008 11:14 AM, Blogger MeadowLark said...

Please call and ask your Representative to vote NO. The Senate voted on 98% the same bill as the first time, yet they ADDED to it. Pork and sweeteners. This is unreal and we have to do something about it. Please call.


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