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Wondering how much of your money will go towards “fixing” the problem?

by Morgan on December 3, 2008

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A great graph by EconomPicData shows just how much of the cash dolled out by Hank Paulson will actually remain in the system.  The bottom line?  From the $125 billion handed out to-date to the largest 9 banking institutions a mere $17 billion will go towards recapitalizing the system.  The rest?  Yup – bonuses and compensation.

My head just exploded.

From EconomPicData via Alternet:

It turns out that the nine banks about to be getting a total equity capital injection of $125 billion, courtesy of Phase I of The Bailout Plan, had reserved $108 billion during the first nine months of 2008 in order to pay for compensation and bonuses.

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  • ZellM
    Morgan:

    This data, if true, is incomprehensible. Is there another source to back up this claim? The reason I ask is because I noticed that the source of the data is Alternet. Alternet has absolutely not credibility at all. They are extremely biased (liars).
  • Hi Zell,

    I think the devil's in the details. The number $108 billion was the earmarked figure for salaries and compensation - not the actual number. I suspect that with layoffs, corporate bonus restructuring, etc. the number will be lower - by how much is the question.
  • Victoria
    This country won't see a recovery until people, I mean workers get educated, involved and understand what politicians do. It is very easy to give away money when your actions are not followed. The myth that IF financial institutions go to bankruptcy, the national economy will go too, is fed by the same institutions. ...Ignorance make people believe whatever the BIG ones said.
    I am sorry to tell you, but the government have to help the people, the ones who make this country prosperous, NOT the institutions who are destroying it. Bailout the people, not the ones who suck the blood of the economy.
    Extend unemployment to cover those affected, it will be less costly and more effective. And teach everyone not to borrow for frivolities.
  • CJ
    Morgan -

    You confirmed my worst fears. I have been criticized for not wanting to support the bail out of the 3 American motor companies. People have said, don't you realize people will lose jobs? But this is exactly what I am concerned about. The wrong people getting the help.
    Great post!
  • Un-freakin'-believable!
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