This is a watershed of sorts as Calculated Risk points out:
The current National debt is $9.727 trillion (see TreasuryDirect) as of Sept 19, 2008. …
Add in the Paulson plan, and it’s not even going to be close.
Question: geographically speaking, which places in the United States will bear the brunt of this cost?
September 23rd, 2008 at 5:34 pm
Answer: The rich states, aka the Creative Class states, aka the big Blue States. Roughly look at average income multiplied by population, and those states will bear the brunt — California, New York, Massachusetts, etc. Aside from Texas and Florida, much of the South gets off easy, as does the empty Midwest.
September 24th, 2008 at 1:38 am
Immediately, the financial center, New York, the city and the state, will receive the impact. Eventually, the losses will disperse according to the dispersal of the shareholders. Whoever owned great stakes in Lehman Brothers will experience tremendous loss. While most individual investors should recover from the losses, those most reliant upon the financial sector in their holdings will endure the greatest losses overall.
September 24th, 2008 at 2:36 am
I remember reading an article in The Guardian (www.guardian.co.uk) about the impact of rising cost of living in the UK. It was basically saying the elderly who had paid off their mortgages are better isolated from the shocksn of rising interest rates and rising inflation. It then mapped out where the concentrations of the most isolated are. Wealthy and elderly areas were the best off; younger and more aspirational areas on the edges of wealthy areas were the worst hit (as I recall, that may not be strictly correct.)