Funding the Financial Sector Versus Funding the Real Economy

The following table, provided by The Contrary Investor, speaks volume on the actual size of the bailout/stimulus money. (It will also make you bad and cry at the same time.) What is really interesting is the allocation of that money. Out of the total of $12.5 trillion in bailout/stimulus commitments, exactly $955 billion is economic stimulus money. ALL of the remainder, 92.4%, is financial sector and credit market bailout money. That’s right, of $12.5 trillion in committed money, a monumental 7.6% of the total is being directed to areas that “might” create jobs for a time. Only $190 billion, or 1.5%, is earmarked for so-called infrastructure money and that culminates in 2018.