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That 300 million isn't inflation-adjusted, is it? Also, most of the $4-trillion-range figures are of guarantees, not actual dollars spent or committed - a good
by kgrin 17y ago
That 300 million isn't inflation-adjusted, is it?
Also, most of the $4-trillion-range figures are of guarantees, not actual dollars spent or committed - a good deal of that money has been or is going to be repaid. If the banks default on literally all of it, we're going to have much bigger problems; certainly, some of that money is truly at risk and is likely to never be repaid - but hardly all of it.
Now, that doesn't mean any of it is a great idea - a government guarantee of your debt is certainly a valuable give-away! - but it's not as if "we the taxpayers" wrote a $4 trillion check to Citibank. Distinguishing between a line of credit and a "gift" is pretty important (even though the LOC itself undoubtedly has value).
Edit: just to be clear, I actually agree with the broader point that our priorities are pretty screwed up and that there's a whole host of problems with the way these "bailouts" and whatnot have been handled. That said, exaggerating or making "truthy" comparisons just makes the whole thing less credible, which is unfortunate because the broader point is valid. Call it "the Michael Moore effect."
- va_coder 17y ago"Distinguishing between a line of credit and a "gift" is pretty important" I agree. But it's an interesting rant, as someone said below.
- kgrin 17y agoSure, but to the extent that the author is comparing two numbers to generate shock value, the fact that he's really comparing an amount of apples spent to a number non-inflation-adjusted oranges lent makes the whole thing a bit misleading.