Do You Know Where Your Bailout Money Is Going?

For those that watched 60 Minutes this Sunday, 2/16/2009, the following is no surprize.   For those watching our economy spiraling downward and who also understand the banks policy of home loans, the following is just a confirmation of how greed causes depression:

According to a World Savings Bank executive on 60 Minutes today, World Savings bank made billions of home loans to buyers that could not qualify without the loan officers falsifying their income numbers.   Eventually, the husband and wife team that founded the bank in 1963 sold World Savings Bank to Wachovia for $25.2 billion before the housing industry crashed.   After Wachovia acquired the bank, the defaults on their home loans grew to $36 billion requiring Wells Fargo to absorb Wachovia after a government bailout thanks to part of the taxpayers $800 or $900 billion already allocated.   And just think, our government is going to add another $750 billion or more to the bailout!!!

Can our spiraling depression be stopped as the rats abandon the financial ship?

Maybe 40% of the homeless won't be military veterans anymore.

Stay Tuned for more February foreclosures, bankruptcies and failed financial institutions.

A Wizard Responds

A Wizard's Response, February 16, 2009

How right you are.   The government is following the Japanese example which failed so we will watch the economy slowly or fastly shrink while the bankers still get their high salaries plus bonuses whatever they call them.   It could be worse than the great depression and last longer with a questionable recovery.

An Angel Responds

An Angel's Response, February 16, 2009

It does not take a financial genius to unravel this mess and it makes me mad when the government says it does.   Go back to an elementary civics class.   What supports out Democracy/free market? tax dollars. period.

Having run household budgets for decades I have seen the changes to the average worker in America.   When our girls were little medical payouts on our part were tax deductible, so were a whole bushel basket of things.   If you worked, the tax system was not that unfair.

At the same time through decades laws were written to help the large companies (anyone remember Walton starting Wal-Mart with American made goods?)   So shift the tariff/trade agreements and slowly American business can not hold up against the no tax system against goods brought in from around the world.   How does this matter?   Please tell me how our government gets the money it uses for things like roads or to give to schools?..the tax base = the American worker.

Yes, it was the very wealthy Republicans pushing deregulation of business but the Dems did what they do best- wimp out and shut up.   Then Clinton came up with NAFTA..icing on the cake to kill American jobs and small business.

This all makes me want to hit a head against the wall - not mine.   Still..I understand the Doom and Gloom, it is very difficult to have any faith in bailing out banks.

Deadeye Jane Responds

Deadeye Jane's Response, February 16, 2009

Dear friends:  First, I want to thank Scott for efforts to keep us informed (quite seriously, thanks Scott) and to applaud his new logo at the bottom of this (and I assume some subsequent e-mails).  Because it is so easy to suffer from hoof-in-mouth on the subject of the economy these days, I will refrain whenever possible in expressing opinions (except this time) on these types of e-mails from everyone.  Possibly could declare "open season" on bank CEOs and related financial types - especially those running for the hills or crying over lost bonus money.  I am sure we could think of some other targets, but for now that is sufficient.  Perhaps the bag limit could be a baker's dozen or so per day, with a 15 minute head start (on foot, of course) and no elephant guns.  Seems fair to me.

This (Computers Will Fix Everything) is a wonderful companion piece for the e-mail on the bailout.  Scott, you are doing a magnificent job as "The Prophet of Doom and Gloom" and if we ever needed a laugh (assuming we can still laugh at all) we need it now!  Keep up the excellent work, Scott:  And...  perhaps my comments on the earlier e-mail should be modified as to the targets - looks like we need to include more than banking and other financial CEOs.  Love to all, Deadeye Jane

Note: The average CEO's salary in the US is 475 times greater than the average worker's salary.   In Japan, it is 11 times greater; in France, 15 times; in Canada, 20; in South Africa, 21, and in Britain, 22.