Sep 22 2010
Posted in Property Finance
It seems the world has long forgotten the Credit Crisis – the worst recession in 80 years that was spawned by the panic that followed the failure, in September 2008, of Lehman Brothers.
The $4.2 Trillion that the Credit Crisis has cost the US government surpasses the $3.6 Trillion (adjusted for inflation) that World War II cost; and is put in context when one considers the cost of earlier bailouts (All adjusted for inflation):
- US Marshall Plan – $115 Bn
- Louisiana Purchase – $217 Bn
- Race to the Moon – $237 Bn
- Savings & Loan Crisis – $256 Bn
- Korean War – $454 Bn
- The New Deal – $500 Bn
- Gulf War II / War on Terror – $597 Bn
- Vietnam War – $698 Bn
- NASA (Cumulative) – $851 Bn
All these combined total – $3.9 Trillion
Add to this the cost of World War II at $3.6 Trillion
Then consider that the Federal Reserve and US Treasury between them are authorized to spend up to $12.8 Trillion!!
The shakeup and fallout of the Credit Crisis has every viable company finding new innovative ways of doing more with less – getting more market share even in difficult times.
The level of overall global debt (private and public) is making many people fearful that another financial crisis could erupt. There is little else that features presently.