Big Bailouts, Bigger Bucks

The credit crisis bailout: the single most costly outlay in American history?

Eye-popping data and analysis from Barry Ritholtz, of The Big Picture Blog:

Whenever I discussed the current bailout situation with people, I find they have a hard time comprehending the actual numbers involved. That became a problem while doing the research for the Bailout Nation book. I needed some way to put this into proper historical perspective.
If we add in the Citi bailout, the total cost now exceeds $4.6165 trillion dollars. People have a hard time conceptualizing very large numbers, so let’s give this some context. The current Credit Crisis bailout is now the largest outlay In American history.
Jim Bianco of Bianco Research crunched the inflation adjusted numbers. The bailout has cost more than all of these big budget government expenditures – combined:

• Marshall Plan: Cost: $12.7 billion, Inflation Adjusted Cost: $115.3 billion
• Louisiana Purchase: Cost: $15 million, Inflation Adjusted Cost: $217 billion
• Race to the Moon: Cost: $36.4 billion, Inflation Adjusted Cost: $237 billion
• S&L Crisis: Cost: $153 billion, Inflation Adjusted Cost: $256 billion
• Korean War: Cost: $54 billion, Inflation Adjusted Cost: $454 billion
• The New Deal: Cost: $32 billion (Est), Inflation Adjusted Cost: $500 billion (Est)
• Invasion of Iraq: Cost: $551b, Inflation Adjusted Cost: $597 billion
• Vietnam War: Cost: $111 billion, Inflation Adjusted Cost: $698 billion
• NASA: Cost: $416.7 billion, Inflation Adjusted Cost: $851.2 billion

TOTAL: $3.92 trillion

For some even more dazzling comparison and analysis, be sure to read Ritholtz's full article here.

We hope this startling information doesn't spoil our gentle readers' appetites, as they get ready for today's Thanksgiving holiday feasts. Be sure to have an extra helping or two of gravy today. It seems everyone in the financial sector is already doing that. Gluttony indeed seems to be highly fashionable this holiday season.

Update 11/27/08 8:45 a.m. MT: In an article update a few minutes ago, Mr. Ritholtz makes note that his above $4.6165 trillion dollar figure might be a mite on the low side:

Bloomberg calculates the total amount the taxpayer is on the hook for is $7.76 trillion, or $24,000 for every man woman and child in the country. (Data breakdown is here)

Our thanks this Thanksgiving Day to Mr. Ritholtz, for compiling and sharing this sobering information.