Microsoft Profits vs. $700 Billion Wall Street Bailout

Microsoft has endorsed the $700 billion Wall Street bailout that President Bush signed into law on Oct. 3. But how’s this for some quick math: Microsoft’s annual profits could pay the entire $700 billion sum faster than some US homeowners can pay off their mortgages. Here’s how.

Let’s do some quick math. Microsoft’s net income was $17.681 billion for its fiscal year ended June 2008. Now, assume those annual profits hold steady until the end of time. (Hey, it could happen.)

If Uncle Sam invoiced Microsoft for the entire $700 billion bailout (and let’s assume we don’t charge Microsoft interest…), the software giant could pay off the $700 billion balance in roughly 39 years and seven months.

At that rate, Microsoft could pay for the bailout faster than some US homeowners will pay off their mortgages.

My Fellow Americans: Thank You

Brad Smith, senior VP and general counsel at Microsoft, isn’t offering to pick up the $700 billion tab. But he is praising the government bailout plan.

According to a statement from Smith released Oct. 3:

Yada, yada, yada, thank you Main Street USA for bailing out Wall Street.

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