Buyer's Remorse

by Larry Levin

Everyone has experienced buyer's remorse from time to time when you think - I could have bought WHAT with the same amount of money? Said another way, you feel like you overpaid or made an irrational decision. I was wondering what the US could have bought with all of the money the government has recently spent and pledged, which comes to $8.4 trillion. As you'll see below, the US could have (all at once) paid for a great deal with $1-TRILLION in change. Hmm, ya think we'll experience buyer's remorse over the current profligate spending spree of the so-called geniuses in government?

EXPENSE COST INFLATION ADJUSTED

Louisiana Purchase $15 million $217 billion

Race to the Moon $36.4 billion $237 billion

S&L Crisis $153 billion $256 billion

Korean War $54 billion $454 billion

The New Deal $32 billion (est) $500 billion (est)

Invasion of Iraq $551 billion $597 billion

Vietnam War $111 billion $698 billion

NASA (Cumulative) $416.7 billion $851.2 billion

WORLD WAR II $288 billion $3.6 trillion

Total $7.4 trillion

Source: CNBC, Bloomberg

As you can see, our government has spent and pledged one trillion MORE than all the major programs/wars/purchases above - in less than one year! Moreover, they have declared they're just getting started, even though we have nothing to show for it. Buyer's remorse indeed!

Previous Day's Trading Room Results:

Trade Date: 12/12/08

E-Mini S&P Trades*
(before fees and commissions):

1) No trades today.

ZB (30 Year Bond) Trades*
(before fees and commissions):


1) No trades today.



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