You too can comprehend the AIG bailout

Measured against the number of galaxies in the universe, for instance, the rescue package seems reasonable.

By Steve Clifford

The cost of the AIG bailout has now reached $152 billion. You may find this number difficult to comprehend.

We understand a million. That's what used to make one rich, before it became the price of a small fixer-upper in Madison Park. Billions are more of a problem. Only when placed in context can one understand the enormity of $152 billion.

Allow me to illustrate. Consider a stack of bond certificates, each worth $1 billion. To reach a value of $152 billion, this stack would rise to MORE THAN ONE AND ONE-QUARTER OF AN INCH in height.

Here are a few more illustrations of how $152 billion measures up:

· If you wanted to give one dollar for each galaxy in the universe, $152 billion would pay FOR THE FIRST 30 PER CENT.

· $152 billion equals 0.2 per cent of THE NUMBER OF CELLS IN THE AVERAGE HUMAN BODY.

· $152 billion is MORE THAN DOUBLE $75 billion and MORE THAN HALF of $300 billion.

· $152 billion equals 0.3 per cent of the TOTAL CREDIT DEFAULT SWAP MARKET.

· $152 billion could reduce the actuarial DEFICIT OF THE SOCIAL SECURITY SYSTEM by 1.1 per cent.

· $152 billion could finance ALMOST SEVEN Boston-style "Big Digs."

· If one divided this $152 billion bailout equally among ten insurance companies, EACH WOULD RECEIVE $15.2 BILLION. If one divided it equally between five insurance companies, EACH WOULD RECEIVE $30.4 BILLION.

· With $152 billion, one could purchase A LOT OF EXPENSIVE STUFF, including the Honus Wagner T206 baseball card, AND STILL HAVE MONEY LEFT OVER.

· Invested in municipal bonds paying 5 per cent, $152 billion would produce annual TAX-FREE INCOME OF $7.6 BILLION.

· $152 billion equals 0.9 per cent of THE GDP OF THE EUROPEAN UNION.

· $152 billion is equal to 37 per cent of the $410 billion OMNIBUS-SPENDING BILL the Senate passed last Tuesday.

· If ants were priced at 20 cents per thousand, one could PURCHASE 7 PER CENT OF THE WORLD'S ANT SUPPLY for $152 billion.

I trust this has helped you to put the IMMENSE SUM OF $152 BILLION in perspective.

http://crosscut.com/2009/03/09/flip-side/18896/

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