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Bailout cost $29 trillion

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$29 trillion dollar to bailout the banks. Barry Ritholtz writes about a study by the Levy Economics Institute of Bard College called “$29,000,000,000,000: A Detailed Look at the Fed’s Bail-out by Funding Facility and Recipient”. In it, the study looked at what the Federal Reserve lent or guaranteed.

The researchers took all of the individual transactions across all facilities created to deal with the crisis, to figure out how much the Fed committed as a response to the crisis. This includes direct lending, asset purchases and all other assistance. (It does not include indirect costs such as rising price of goods due to inflation, weak dollar, etc.)

The net total? As of November 10, 2011, it was $29,616.4 billion dollars — (or 29 and a half trillion, if you prefer that nomenclature).

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Timothy Geithner and Goldman Sachs

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Timothy Geithner never formally left the New York Fed, here he is squirming over questioning by Marcy Kaptur over his links with Goldman Sachs during the 2008 crisis.

Euro Crisis Summed Up

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This video rather accurately sums up the Euro crisis.

Life After The Euro

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Central Banks around Europe are considering life after the Euro as reported by GoldCore.

Central Banks Prepare For Life After Euro
The Wall Street Journal reports today that central banks are preparing for life after the euro with countries studying printing national currencies in case the single monetary union collapses.

Given the real risk of a breakup of the currency as we know it today, that would seem like the logical and prudent thing to do. 

Major multinational corporations are planning for the possibility of this scenario and recently British Chancellor George Osborne said his government had contingency planning in place in the event of the break-up of the euro.

There has been reports for the last few months of Central Banks seeking printing equipement or rumours of printing new currency. Earlier this week we reported that the Wall Street Journal has reported the Irish Central Bank has been seeking printing equipment to go back to the Punt.

In an article last week from ArabiaMoney,

Germany has its printing presses working overtime but they are not printing euros but Deutsche Mark notes in case the eurozone sovereign debt crisis ends in a return to national currencies.

At the same time the British Foreign Office has issued warnings to embassies in the eurozone to prepare to handle the problems of its expatriates who may be unable to access local bank accounts and face rioting mobs.

On the 4 October MoneyNews.com it was said quoted by a Philippa Malmgren who is a former economics advisor to George Bush

“The decision has already been made by the government that leaving the euro is a possibility. I think they have already got the printing machines going and are bringing out the old deutsche marks they have left over from when the euro was introduced.”

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