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:
Congressional passage of the financial recovery package is a critically important step to bringing back economic stability in the U.S. and around the globe. This crisis affects more than just the U.S. financial sector, it affects every corner of the world economy, and today’s vote will help re-instill confidence around the globe. Microsoft is pleased to see members of the U.S. House of Representatives and Senate come together to pass this important legislation. I particularly appreciate the support of the Members of the Washington State delegation who cast their vote today to help preserve jobs in all sectors of the economy of Washington state and across the U.S.
Yada, yada, yada, thank you Main Street USA for bailing out Wall Street.
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What kind of an idiot are you?
Microsoft has no involvement in the collapse of the economy so how did you even come to an idea like this? Yes, they make a 17 billion profit each year and thats there right, they get it from doing honest business, they owe nothing but taxes back to the government or the world.
Do you just spew shit without thinking? Could you imagine a world without Microsoft? There one of the leading companies in new technologies as well as majority of americans use there products in there business and personal lives. “Yeah, have microsoft pick up the bill, they can afford it!” WTF? Those profits you see get spent on R&D each year, that money is for the future of there business, it’s there to spend so they can grow and expand. Do you think that money just add’s up every year and there sitting on a 20 year surplus by now?
I will ask again, what kind of an idiot are you? Do you think before you write? I don’t think so and thank god your article is so absurd that it will never make front page of digg.
F*** Off and get a clue how the world works.
Casious: So, um, you’re pretty upset. Attack The VAR Guy, but watch the language.
The blog was a casual observation that you took pretty serious. And besides, The VAR Guy didn’t actually send an invoice to Microsoft. And neither did the folks in Washington. The blog indicates how profitable and mighty Microsoft remains. Few other companies can match that profit power.
Now there’s someone who can’t bear some humour….
“Could you imagine a world without Microsoft?”
- Didn’t Louis Armstrong perform that one?
For the hard of thinking, may I politely suggest that the VAR Guy was talking about all of big business and contextualising that with regular debt for regular people. In such terms, $700 billion isn’t such the stretch that it seems – that is, if big business decides to protect its root customer base instead of fleecing it for all it’s worth.
The thing that does sort of link to Microsoft on a things said level (I’m obviously not pinning it on them). I was thinking of the (lunatic) smear in the past that equates Free Software to communism which is of course what I’ve seen many members of the USA public interview on TV news calling the bail out.
So Microsoft endorsing it does call for accusations of hypocrisy.
We got some angry individuals. Funny how this bill is to protect ‘Main Street’ but its Wall Street and all big businesses going around parading it. When the bill goes from 3 pages to over 100 you know something is wrong.
Hyper-inflation is not that big a problem for the rich. MS profits for next year will definitely be higher, but thats only because our dollar will be worth less.
My god you suck… First up, net INCOME is not the same as net PROFIT. Granted, they make a killing, so profit would be quite high too, and I haven’t checked their releases, but you state net income, so either get your facts or wording straight.
Second, a little thing called interest. Microsoft could never pay off such an amount, even if it were only indexed with inflation. Even at an unrealistic 2.5% interest, you’re talking $17.5B. Using your naive income=profit assumption, that would only take a few thousand years to pay off at that rate. Ho ho ho, even that is probably longer than some people would take to pay off a home loan, lets make a joke about the unfortunate ‘cos its easy.
I’m all for bringing down Microsoft and making a joke at their expense, but stuff like this (even in jest) just makes you look like an immature, rabid fanatic and reflects badly on the rest of us.
@ #1: Casious,
The leaders of Microsoft are involved in the economic collapse of America. They convened with the ruling elite in Chantilly, Virginia for the Bilderberg conference.
1) Of course The Var Guy was kidding, so I think the harsh words should be deleted (possibly the whole post).
2) Those who think big money doesn’t open the road into politics are very naive. I have yet to see a person or company owning lots of billions of $ and not being involved into politics. The American oil companies and software and h/w giants are among them. Study the past of the persons from the Bush administration (and of Bush himself) and you will discover their ties with oil companies, many even worked there. Democracy, security, war on terrorism, patriotism are ploys thrown at American people to let them play their old games. Venezuela, Iran and Iraq are among the “axe of evil”, yet these are countries that can’t defend themselves against US and own more than 50% of earth’s oil. The US administration is now working hard in Iraq (after invasion) to make their laws let (American) companies buy and own those lands of oil and assets, ironically it’s almost done, the president in Iraq has ratified it, the problem is the parliament who is not own (yet) by US and refuses to ratify the new law. For those who don’t know: in the past American companies did own these oil assets in Iraq, and surprise surprise, the grandfather of Bush used to supply Germany during world war II.. this is history the Bush family wouldn’t like you to know.. Microsoft is also involved, remember how the antitrust case against M$ changed radically after Bush came to power, I feel sorry for those naive beings who think all this is just coincidence.
Wow, thats big money if i have much money like microsoft i will stop work. If you like free software visit my blog http://blog-baliblogier.blogspot.com
“Yes, they make a 17 billion profit each year and thats there right, they get it from doing honest business, they owe nothing but taxes back to the government or the world.”
Well it’s their right to earn a profit. I’m not sure they do it entirely honestly though.
Wow. This is a rather lighthearted article designed to compare the scale of the Wall Street bailout to something we all understand: The power and size of Microsoft. What’s with he angry people. Maybe it’s the economy?
Some interesting facts: 1. If Oprah dropped a $10 bill on the sidewalk and took 3 seconds to pick it up, she would actually lose thousands of dollars. 2. In this picture it actually cost Bill Gates 10’s of thousands of dollars to pick up the three $5 bills and pose for the head shot in this story.
Also, the bailout of WallStreet, I believe will be proven to be one of the biggest mistakes our government ever made…
And finally, thank you Microsoft for your concern on your small partner’s profitability. It has bought my loyalty.