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.