Where the $700 Billion Dollar Figure Came From! - GoFuckYourself.com

MovieMaster · 09-29-2008, 07:02 AM

http://latimesblogs.latimes.com/wash...lout-plan.html

You won't believe where that $700-billion bailout figure came from

Here's something that John McCain and Barack Obama and Sarah Palin and even longtime Washingtonian Joe Biden probably don't know. Not to mention Bob Barr, Ralph Nader and Ron Paul, who usually knows everything.

It's a fascinating footnote to the economic and political bailout debate that's kept so many people from more properly focusing on the pennant races and the Colts' problems in the last week. (Incidentally, do you think we'd have had this big fight if President Bush had called it a "rescue" plan instead?)

Our buddy from two lifetimes ago, Carl Lavin over at Forbes.com, points out a fascinating paragraph buried in a story on his website late last week by Brian Wingfield and Josh Zumbrun.

You know, this $700-billion figure that exploded into evThe U.S. Treasury Dept which was once headed by Albert Gallatin--see statue--a Swiss native and former U.S. representative who invented the powerful Ways and Means Committeeeryday political parlance almost as fast as Sarah?

The $700-billion "cost" of resolving the financial crisis and restoring confidence and liquidity in the credit markets starting this morning?

The $700-billion figure that Senate Democratic Majority Leader Harry Reid first said he could really use McCain's help with, but then the Arizonan took him up on it and Reid suddenly said the Republican would only get in the way and anyway, Reid said, he already had a done deal, except he didn't and the Nevadan ended up being the embarrassed one?

The $700-billion figure that dominated the first part of the first presidential debate of the 2008 general election season between McCain and Obama?

The $700-billion figure that won't really end up being anywhere near the actual cost because no one knows what all those mortgaged properties are really worth now anyway? Which is the whole problem in the first place because the institutions holding that paper don't know the value of what they're holding either, which is why everyone suddenly got so frightened?

That $700-billion figure that won't really last because eventually the feds will sell off what they're buying and might even make a profit in the end as they did with the Chrysler bailout warrants years ago?

You know where that very important $700-billion figure came from?

Here's a quote from that Forbes story:

"It's not based on any particular data point," a Treasury spokeswoman told Forbes.com Tuesday. "We just wanted to choose a really large number."

They made it up to be sufficiently ginormous to frighten everyone into rapid action.

And it worked.

--Andrew Malcolm

Have immediate alerts on all Ticket items flashed directly to your cell by clicking here and registering with Twitter.

Photo credit: U.S. Treasury Department

StuartD · 09-29-2008, 07:07 AM

From the articles I've read from financial experts, they had interpreted the reasoning to be derived from the outstanding mortgage credit that's out there. Naturally, they phrased it better than I can.

But essentially, it was estimated that there was some $14 trillion in mortgages that needed to be covered, and thus they calculated 5% to cover it... which amounts to $700b.

Hank_Heartland · 09-29-2008, 07:08 AM

Sounds about right...It's all Monopoly money to them anyways

MovieMaster · 09-29-2008, 07:12 AM

Wow, gotta love them!

https://youtube.com/watch?v=_MGT_cSi7Rs

dirtymind · 09-29-2008, 07:13 AM

that is one weird way of explaining this mess. I think there must be more to it

seeandsee · 09-29-2008, 07:37 AM

Huge numbers!

directfiesta · 09-29-2008, 07:56 AM

from here:

woj · 09-29-2008, 08:56 AM

Quote:

Originally Posted by directfiesta

from here:

interesting

GetSCORECash · 09-29-2008, 09:20 AM

Quote:

Originally Posted by StuartD

But essentially, it was estimated that there was some $14 trillion in mortgages that needed to be covered, and thus they calculated 5% to cover it... which amounts to $700b.

Now they are saying that it won't be enough. $700 Billion won't solve the problem. To many loans, and to much paper being held by foreign banks.

BradM · 09-29-2008, 09:24 AM

Are you a web designer? You seem to be exploding like one. AlienQ meltdown style.

Zorgman · 09-29-2008, 09:31 AM

Pass go and collect $200 :D

09-29-2008, 07:02 AM	#1
MovieMaster Confirmed User Join Date: Apr 2003 Posts: 897	Where the $700 Billion Dollar Figure Came From! http://latimesblogs.latimes.com/wash...lout-plan.html You won't believe where that $700-billion bailout figure came from Here's something that John McCain and Barack Obama and Sarah Palin and even longtime Washingtonian Joe Biden probably don't know. Not to mention Bob Barr, Ralph Nader and Ron Paul, who usually knows everything. It's a fascinating footnote to the economic and political bailout debate that's kept so many people from more properly focusing on the pennant races and the Colts' problems in the last week. (Incidentally, do you think we'd have had this big fight if President Bush had called it a "rescue" plan instead?) Our buddy from two lifetimes ago, Carl Lavin over at Forbes.com, points out a fascinating paragraph buried in a story on his website late last week by Brian Wingfield and Josh Zumbrun. You know, this $700-billion figure that exploded into evThe U.S. Treasury Dept which was once headed by Albert Gallatin--see statue--a Swiss native and former U.S. representative who invented the powerful Ways and Means Committeeeryday political parlance almost as fast as Sarah? The $700-billion "cost" of resolving the financial crisis and restoring confidence and liquidity in the credit markets starting this morning? The $700-billion figure that Senate Democratic Majority Leader Harry Reid first said he could really use McCain's help with, but then the Arizonan took him up on it and Reid suddenly said the Republican would only get in the way and anyway, Reid said, he already had a done deal, except he didn't and the Nevadan ended up being the embarrassed one? The $700-billion figure that dominated the first part of the first presidential debate of the 2008 general election season between McCain and Obama? The $700-billion figure that won't really end up being anywhere near the actual cost because no one knows what all those mortgaged properties are really worth now anyway? Which is the whole problem in the first place because the institutions holding that paper don't know the value of what they're holding either, which is why everyone suddenly got so frightened? That $700-billion figure that won't really last because eventually the feds will sell off what they're buying and might even make a profit in the end as they did with the Chrysler bailout warrants years ago? You know where that very important $700-billion figure came from? Here's a quote from that Forbes story: "It's not based on any particular data point," a Treasury spokeswoman told Forbes.com Tuesday. "We just wanted to choose a really large number." They made it up to be sufficiently ginormous to frighten everyone into rapid action. And it worked. --Andrew Malcolm Have immediate alerts on all Ticket items flashed directly to your cell by clicking here and registering with Twitter. Photo credit: U.S. Treasury Department __________________ 100% Exclusive Program Babe-Bucks.com = HotModelClub.com \| NextDoor-Models.com Payments by: CCBILL ICQ Three 02 Five 638 Five 6 ReliableServers.com - NEED BANDWIDTH?

09-29-2008, 07:07 AM	#2
StuartD Sofa King Band Join Date: Jul 2002 Location: Outside the box Posts: 29,903	From the articles I've read from financial experts, they had interpreted the reasoning to be derived from the outstanding mortgage credit that's out there. Naturally, they phrased it better than I can. But essentially, it was estimated that there was some $14 trillion in mortgages that needed to be covered, and thus they calculated 5% to cover it... which amounts to $700b. __________________ This is me on facebook This is me on twitter

09-29-2008, 07:08 AM	#3
Hank_Heartland Confirmed User Industry Role: Join Date: Sep 2002 Location: chicago, il Posts: 3,987	Sounds about right...It's all Monopoly money to them anyways __________________ Icq = 459565429 AIM = butlerhankb http://stripperpins.com Twitter = @stripperpins Facebook = Stripperpins.com [email protected]

09-29-2008, 07:12 AM	#4
MovieMaster Confirmed User Join Date: Apr 2003 Posts: 897	Wow, gotta love them! https://youtube.com/watch?v=_MGT_cSi7Rs __________________ 100% Exclusive Program Babe-Bucks.com = HotModelClub.com \| NextDoor-Models.com Payments by: CCBILL ICQ Three 02 Five 638 Five 6 ReliableServers.com - NEED BANDWIDTH?

09-29-2008, 07:37 AM	#6
seeandsee Check SIG! Industry Role: Join Date: Mar 2006 Location: Europe (Skype: gojkoas) Posts: 50,945	Huge numbers! __________________ BUY MY SIG - 50$/Year Contact here

09-29-2008, 07:13 AM	#5
dirtymind Confirmed User Join Date: May 2008 Posts: 2,348	that is one weird way of explaining this mess. I think there must be more to it

09-29-2008, 07:56 AM	#7
directfiesta Too lazy to set a custom title Industry Role: Join Date: Oct 2002 Location: Punta Cana, DR Posts: 29,586	from here: __________________ I know that Asspimple is stoopid ... As he says, it is a FACT ! But I can't figure out how he can breathe or type , at the same time ....

09-29-2008, 09:24 AM	#10
BradM Confirmed User Join Date: Dec 2003 Location: 1123,6536,5231 Posts: 3,397	Are you a web designer? You seem to be exploding like one. AlienQ meltdown style.

09-29-2008, 09:31 AM	#11
Zorgman Confirmed User Join Date: Aug 2002 Location: Sydney, Australia Posts: 6,103	Pass go and collect $200 :D __________________ ---