So now they are saying the total bail-out cost is 8 trillion dollars. The other figure I heard is 4 trillion dollars - what's a few trillion among friends?
Does this factor in the Iraq debt?
I am aware to date the bail-out is only asset swapping, and not a real cost, but that will come with Obama's package. Nonetheless, the sheer size of these deficit figures must now constitute the greatest threat to the world economy.
Sure we are all contemplating that life will go on without the US, but what has happened, is that vast sums of money have been sucked out of the global share market - it has gone into two main areas, first is to prop up hedges for sound overseas investments in real assets, but the second into US Treasury Bonds - that's where the US Government is getting the money to fund the bail-outs.
Now if the US becomes a serious economic basket case, the back-wash from its sinking will swamp all other economies. Too much money is invested in it.