A billion here, a billion there... pretty soon we are talking about real money.
And yes that seems to be the thought process up in DC these days. Bail-outs beget bail-outs. And now we are talking about one trillion dollars. $1T... heck, that should be bold. $1T.
Without getting into the ethicacy of the "Mother of all bail-outs", this has got to be a giant wake-up for politicians, regulators, banks and everyone else. The country is literally a different place today. We now have a government that owns "private corporations." And we are soon going to have a government that will own scores of thousands of "private homes."
And to get a better idea of the magnitude, every man, woman and child in the country, legal or illegal, will owe about $2900. In effect, we have to add about $10,000 to every household for the bail-out.
There are no doubt a lot of opinions about whether this bail-out will be good for the economy, bad for the economy, good for real estate, bad... etc. The only way to know will be to look backwards at it.
But make no mistake, this is HUGE.
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