In July, I wrote about what the implications of a hypothetical “economic war” where a country has it’s economy systematically attacked with the aim of causing damage to the country. Perhaps it sounds like a bit of a farfetched idea but I think the recent calculation carried out by an economist, showing that the US bank bailout has already cost more than the US involvement in World War 2, could perhaps add weight to the argument that it should be taken seriously.
Frequent CNBC commentator, Barry Ritholtz, writes on his blog:
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.
Let’s take this in contrast (all figures are inflation adjusted):
- Bank Bailout: $4.62trillion
- War World 2: $3.6trillion
- NASA: $0.85trillion
- Iraq War: $0.60trillion
- The New Deal: $0.5trillion
That’s just really scary.