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Updated almost 5 years ago,
Coronavirus & monetary stimulus effect on real estate - buckle up
The government is talking about stimulating the economy with One Trillion dollars ($1,000,000,000,000). Does that number even exist? Yes, it is actually a number. The question is how much is it and how will it affect real estate. So, here it is:
All this talk about "stimulus packages" and "bailouts"...
A billion dollars...
A hundred billion dollars...
Eight hundred billion dollars...
One TRILLION dollars...
Let's try to get a sense of what exactly a trillion dollars looks like.
We'll start with a $100 dollar bill. Currently the
largest U.S. denomination in general circulation. Most everyone has seen
them, slighty fewer have owned them. Guaranteed to make friends
wherever they go
A packet of one hundred $100 bills is less than 1/2" thick and contains
$10,000. Fits in your pocket easily and is a real restate agent's
decent commission on a sale.
Believe it or not, this next little pile is $1 million dollars (100
packets of $10,000). You could stuff that into a grocery bag and walk
around with it. Watch for abandoned bags next time you are out and about
you never know what may be in it . . .
While a measly $1 million looked a little unimpressive, $100 million is a
little more respectable. It fits neatly on a standard pallet...
And $1 BILLION dollars... now we're really getting somewhere...
Next we'll look at ONE TRILLION dollars. This is that
number we've been hearing so much about. What is a trillion dollars?
Well, it's a million million. It's a thousand billion. It's a one
followed by 12 zeros.
You ready for this? It's pretty surprising.
Go ahead... Scroll down...
Notice those pallets are double stacked.
...and remember those are $100 bills.
So the next time you hear someone toss around the phrase "trillion dollars"... that's what they're talking about.