pailout

The fundamental assumption behind this plan is most curious. Some maintain that the ultimate loss may not exceed $250B – it is therefore to be believed that this amount is causing the havoc in the financial markets and the risk to economic growth. This should be viewed in context of the identifiable net tangible and financial assets of the US economy which include $32.4T of non-financial debt ($51T total debt), $19.4T of public equities value, $11.1T of net real estate value, $7T of foreign-owned assets producing domestic GDP, plus trillions more in public infrastructure, private company equity and net tangible assets; etc. which together with human capital generate our $14.4T annual GDP.

Is it plausible that less than .36% truly bad assets in relation to identifiable total financial and net tangible assets is causing the jeopardy we face? Or, is the impaired and rapidly becoming impaired human and capital asset base far larger than this; and so, poses a lethal danger to real growth?