Beyond the Initial $700 Billion

Barry Ritholtz, of Fusion IQ, is one of the most well respected financial bloggers in the world (http://www.ritholtz.com/blog/). One of his most recent posts took what he estimated to be the total cost of the credit crisis bailout (including the new Citigroup bailout) and compared it to major outlays in our governments history.

Credit Crisis = $4,600,000,000,000

Marshall Plan +
Louisiana Purchase +
Race to the Moon +
Savings and Loan Crisis +
Korean War +
New Deal +
Invasion of Iraq +
Vietnam War +
NASA =
$3,920,000,000,000

According to Ritholz, the 9 items listed above cost in total 2008 inflation adjusted dollars a full $686 billion less than what the credit crisis has cost up to this point.

He goes on to point out that if we didn't spend another dime on the credit crisis it would still be almost $1 trillion dollars more than the entire cost of World War II(adjusted for inflation).

He estimates that by 2010 the total cost of the credit crisis will exceed $10 trillion!!!

To put this exorbitant amount into perspective, the total cost thus far of the bailout could have provided a stimulus check for every American over 18 years of age in the amount of $19,000 with money to spare.