Financial Bailout: How much Liquidity

In the January issue of Stocks, Futures and Options magazine there’s a sidebar on how much liquidity has been pumped into the system. The numbers are from James Bianco of Bianco Research. He says, “In 2008, the Federal Reserve has spent over $8 trillion. That is larger than the Korean War, the Iraq War, the Louisiana Purchase, the New Deal and the race to the moon combined”. The numbers are adjusted for inflation…

Marshall Plan – $115.3 billion
Louisiana Purchase – $217 billion
Race to the Moon – $237 billion
S&L Crisis – $256 billion
Korean war = $454 billion
The New Deal – $500 billion (estimated)
Gulf War/War on Terror – $597 billion
Vietnam War – $698 billion
NASA (cumulative) – $851.2 billion

Grand Total: $3.92 trillion