Category: banking

Fed Bailout Now To Include Foreign Banks; Will Amount To $1.8 Trillion.

Are you getting mad yet? Every time I try to think about something else, I read another article about how bad this is getting. The bailout, which last week was estimated at a mere $1 trillion dollars, is now estimated to end up costing $1.8 trillion dollars. Want to know part of the reason for the almost 100% jump? We are now going to allow foreign banks to apply for bailout money too. Isn’t that grand? We, the lowly taxpayers, get to send our tax money overseas too! Yea! That’s $15,000 per every single U.S. household that will be used for this bailout – hope you didn’t want to pay for a bit of college for your child or put a new roof on your house…

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banking

By David

Economist Paul Krugman – “This Could Be 1931 – The Collapse Of EVERYTHING.”

I promise I won’t write about this every day, and I don’t know if anyone caught Real Time with Bill Maher this past weekend, but he had New York Times Columnist and Economist Paul Krugman on who voiced his concerns about the condition of our financial system:

“When I heard news about this plan my first thought was “Kommisar Paulson is seizing the means of Production”. This is the most socialist move we’ve seen by any administration in God’s knows how long, and it’s coming from the Bush Administration”

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banking

By David

Fed Bailout Could Cost $1 TRILLION Of Your Tax Dollars.

Listening to the President speak this morning about how its going to be difficult, but that he is being forced to spend some taxpayer money in order to “fix” things and how things are still great even though they don’t look that pretty, made me pretty mad. But then when some economists came out today saying that the total cost of this bailout SO FAR could top $1 Trillion dollars, I was really mad. Here’s why:

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banking

By David

Is Your Money Market Fund Next To Go Under?

Um….

The financial meltdown surpassed another dismal milestone today as the bankruptcy of Lehman Brothers forced one of the world’s premiere money market funds to record a loss — the first for such a fund in 14 years. If you’re scared that you, too, are going to get slammed, put your money in an FDIC-insured savings account and/or invest it in a money-market fund at a major firm that will be publicly humiliated if its funds drop. This is no guarantee, of course (the fund that lost money today is a big one), but it’s better than investing in little money-market funds no one has ever heard of.

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banking

By David

Government Will Bail Out AIG; I Own Another Company!

Well, the government has announced this evening that they will in fact bail out AIG with an $85 bailout package that would give the Federal Government an ownership stake in the insurance giant:

Acting to avert a possible financial crisis worldwide, the Federal Reserve reversed course on Tuesday and agreed to an $85 billion bailout that would give the government an ownership stake in the troubled insurance giant American International Group, according to people briefed on the negotiations.
The decision, only two weeks after the Treasury took over the quasigovernment mortgage finance companies Fannie Mae and Freddie Mac, is the most radical intervention in private business in the central bank’s history.

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banking