Bear Stearns, AIG, Fannie, Freddie, FHA ... you have heard it also. I felt that I needed to do some math to see what was really happening. It was an eye-opener!
According to the 2000 census, there are 105 million households in the US. Each household represents an average 2.6 persons. So things will change if you have 3 kids or if you are single, but start your calculations with these estimates.
I started by wondering what it meant when I heard the word "Billion." So I divided one billion by 105 million and computed that every 'Billion' actually means a real $9.52 to your household.
I was onto something, and looked up what has been reported in the government rescue funds for the Wall St. fat-cats. (Please note, that reports vary and I chose not to fight the noise and took the first source I found that showed all five companies: Bear Stearns, Fannie Mae, Freddie Mac, AIG, and FHA.
http://money.cnn.com/2008/09/18/news/economy/bailout_tally_taxpayer/index.htm
[COMPANY] [PROP-UP (in Billions)]
| Bear Stearns | 29 |
| Fannie | 200 |
| Freddie | 200 |
| AIG | 85 |
| FHA | 300 |
Then I added the prop-ups and applied YOUR $9.52 to see that we have spent, loaned, or committed $814,000,000,000 and that means $7,752.38 of your household's money. Feel like coughing that up tomorrow? Next week, month, or maybe next year?
This is a single big bill, but I went on to wonder about something else: Iraq.
There are conflicting numbers of $10-12 Billion per month spent in Iraq. (SUPPORT the troops, this is not about the troops, this is about your household monies!)
Every month that we spend $10 Billion, your household is being indebted to the tune of $95.24 and if it is $12 Billion, your bill is 114.29 per month! That means that your annual bill for Iraq is $1,142.86 to $1,371.43.
Makes a person think that they actually have a tangible part in these happenings.
Peace someday.
-jb
1 comments:
How do Lehman Bros. and Merrill Lynch fit in?
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