When do you shower?

It seems to me that those American's who take a shower before they go in to work, like bankers and stock brokers got a better deal than those who shower after they get off of work, like can manufacturers. The Banks got $700,000,000,000+ and it has not helped the average American taxpayer one bit.

For a total cost of $450 billion (a savings of 250b) the US government could have given EVERY household in America a $150,000 stimulus check. Additionally, they could have taxed that money at a rate of 30%, thereby generating a 135b in tax revenue. Additionally, they could have put restrictions on how the funds were spent. For example, they could have mandated that no less than 50% of the gross amount be spent on existing debt. If a person had no existing debt then they would be forced to place the money into a government savings plan for a period of not less than 2 years.

Had the US government done this, the majority of American's would be current on their mortgages right now, and there would be no foreclosure crisis. Additionally car repossessions would go way down.

The remaining 50% of the gross stimulus amount could be used as the Household saw fit. I am confident that many people would buy new cars. That would help boost the auto industry.

But my bright ideas aside, the automakers are forced to beg for 15b (400 times less then what the Banks got) and they have a new Car Czar. Where is the Bank Czar? I guess the fact that the auto industry employees 3x as many people in America as the banking industry was not factored into the equation. This is not just about the manufacturing jobs, or the nation's ailing steel industry, which relys on the Big Three, or the scientist who invent new technologies like new soy-based foam.

Its clear that the government did not do this to save the economy, but rather to save big business, nsamely the banking business. There is no reason why billions of dollars is being spent and people are still being forced out of their homes. And better yet, why dont the banks lend money to the car makers?

Another Government Bailout

Another day, another bailout. The U.S. government stepped in Tuesday to rescue American International Group Inc. aka AIG, one of the world's largest insurers, with an $85 billion injection of taxpayer money. What this proves is that the US governement has its priorities completely messed up.

Just a few weeks ago America sent $1 billion to Georgia to help rebuild damage caused by its war with Russia. And now the "loan" billions more to a private company. What about our schools and Americans unable to afford healthcare?

There is a problem when a society socalizes losses yet privatizes gains. While every American citizen is helping to foot the bill for AIG while they are in trouble, do we all receive dividend checks when AIG returns to profitability? If so then this is a good deal. Oh by the way where did the US govt get the money from, I thought we had a trillion dollar tab that.

AIG was the second time this month the feds put taxpayer money on the hook to rescue a private financial company. AIG says it plans to repay the money in full with proceeds from the sales of some of its assets.
When one bank loans another bank money, AIG insures those loans. Without AIG banks would have to find other ways to insure those loans.

Under the deal, the Federal Reserve will provide a two-year $85 billion loan to AIG, which many believe teetered on the edge of failure because of stresses caused by the collapse of the subprime mortgage market and the credit crunch that ensued. In return, the government will get a 79.9 percent stake in AIG and the right to remove senior management.

What is important to realize is that all investments have risk and unless your a Big Boy you won't get bailed out.

The Fed's move was part of a concerted push to help calm jittery markets and investors around the world.

On Tuesday, the Fed decided to keep its key interest rate steady at 2 percent, but acknowledged stresses in financial markets have grown and hinted it stood ready to lower rates if needed.

The central bank also pumped $70 billion into the nation's financial system to help ease credit stresses. In emergency sessions over the weekend, the Fed expanded its loan programs to Wall Street firms, part of an ongoing effort to get credit flowing more freely.

The stock market, which Monday posted its largest point loss session since the Sept. 11 attacks, recovered Tuesday after the Fed's decision on interest rates. The Dow Jones industrials rose 141 points after losing 500 points on Monday.

AIG's shares swung violently, though, as rumors of potential deals involving the government or private parties emerged and were dashed. By late Tuesday, its shares had closed down 20 percent - and another 45 percent after hours.

Buy AIG, it will bounce back in the next few weeks, its dirt cheap right now.