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Just How Much is $700 Billion? |
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Contributed by J. R. Ransom
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 US Treasury
Here are a few of the things that
can be done with $700 billion:
- The United
States has spent more than $800 billion on wars in Iraq and Afghanistan
since 2001.
- Just 12 Bill Gateses could foot the
bailout bill.
- Collectively, the 400 richest
Americans have a net worth of $1.57 trillion, or roughly twice the
value of the bailout
- $700 billion is roughly equal
to the GDP of Netherlands, or five times that of Pakistan
- It
is only $100 billion short of the combined GDP of all of Africa
- It
is only $78 billion more than the 2007 US defence budget
- It
would buy around 130 of the latest, biggest aircraft carriers, which
cost about $5.3 billion each
- The plan could be
funded with the market capitalisations of the world's two largest Oil
companies, Exxon Mobil Corp and PetroChina, which stood at $403 billion
and $325 billion respectively at Thursday's close of trading. There
would even be $28 billion in change.
New Blueprint for bailout deal
The
Senate passed a revised Bill which provides up to $700 billion to the
secretary of the Treasury to buy mortgages, other assets, give tax
breaks and increase the amount of federal insurance for deposits.
Stocks buoy on bailout hope, sink
on US data
FTSE
100 -1.8%
DAX -2.51%
CAC-40 -2.25%
Nikkei
-1.9%
Hang Seng +1.08%
TAIWAN
-1.05%
KOSPI -1.39%
JAKARTA -0.74%
STRAITS
TIMES
+0.20%
British
savers seek refuge in Irish banks
Ireland’s
banks are suddenly the flavour of the month among nervous British
savers after the Irish Government stepped out of line with its European
neighbours and pledged a blanket guarantee on all deposits. The Irish
parliament on Thursday approved legislation that will guarantee 400
billion euros ($558 billion) worth of liabilities at Irish banks which
is more than twice the country's annual gross domestic product.
Unnerved by the recent collapses of some of the biggest names in global
banking, British depositors, and companies in particular, have begun
transferring funds across the Irish Sea.
US factories, jobs market bleak
US
factory orders tumbled in August and the number of workers seeking
jobless benefits rose in the latest week to a seven-year high as trauma
in financial markets threatened to cement a deep downturn for the
world's largest economy. Thursday’s reports were just the
latest in a series of grim economic news, and follow
Wednesday’s data from the Institute for Supply Management
showing factory-sector activity shrank in September to its lowest level
since the 2001 recession. The data heightened anxiety in markets,
sending stocks lower as investors came to grips with the idea that the
economy might not be able to stay on its feet in the wake of multiple
blows this year.
US
extends ban on short-selling
Federal regulators on
Wednesday extended an unprecedented ban against all short-selling in
the shares of more than 800 financial companies, keeping it in place at
least until after Congress enacts a massive financial bailout plan. The
Securities and Exchange Commission announced the extension of the ban,
which was put in on Sept. 18 in a bid to shore up investor confidence
in the face of the spiraling market crisis. The ban, which was to
expire Thursday, now will last until the third business day after
enactment of the $700 billion financial bailout plan now before
Congress. It will end no later than October 17.
Buffett is buying $3-bn stocks in
GE
In
a move to increase its liquidity, American giant General Electricals
will raise up to $15 billion through sale of shares with legendary
investor Warren Buffett agreeing to buy stocks worth three billion
dollars. The diversified conglomerate would be offering $12 billion of
common shares and preferred stocks to the tune of $3 billion to
Buffett's Berkshire Hathaway in a private offering. Buffett also
saidthat the US had been hit with an "economic Pearl Harbor," and the
government must respond quickly. “This really is an economic
Pearl Harbor. That sounds melodramatic, but I’ve never used
that phrase before. And this really is one.”
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