According to CNBC, the current financial crisis has cost taxpayers more than WWII, even when adjusted for inflation. The tab is around $4.284 trillion, give or take a billion dollars. Here is a slide show of some of the other massive bills in the United States history.
I don’t know about you but for some reason bailing out the automakers bugs me worse than bailing out the banks. The automakers have been getting their butts kicked by Japanese automakers for years and then gambled on SUVs to bring them back. The gamble failed and now they want the Canadian and American governments to bail them out? I know they are too big to fail but as a part of the next big bailout, I hope Rick Wagoner is out at General Motors and the Ford family loses control of the company. There needs to be consequences to running your company into the ground (like being sold to Honda or Toyota).
In other news, Citigroup is looking for a regional bank as it is flush with cash from the splurge.
In an effort aided by the Federal Deposit Insurance Corp., Citigroup tried to acquire Wachovia before Wells Fargo & Co. made a larger offer that did not rely on help from the government. After various lawsuits were filed over who was the rightful purchaser of Wachovia, Citigroup withdrew its bid. Wells Fargo is proceeding with its bid â€” valued at $12.7 billion in stock â€” and expects the acquisition of the Charlotte, N.C.-based bank to close by the end of the year.
Many analysts have expected Citigroup to strike again, and the bank has said it would likely use a $25 billion investment from the government â€” part of the $700 billion financial rescue package passed by Congress last month â€” to take advantage of opportunities in the market.
I had no idea the $700 billion dollar bailout was designed to help banks go on an acquisition spree.