Taxpayers will lose on this one

Don't you just love government bailouts and government owned enterprises? Now the government (I mean, taxpayers) owns 56% of GMAC, which has been bailed out a few times and will post a massive loss this year. With the billions being lost on waging war around the globe, the looming health care "reform" that will break the bank, and the continued decline in the housing and other markets, is there any doubt in you mind that this thing (the U.S.A.) is headed for a massive meltdown?

Time to own physical gold and stock your closets with supplies. The situation looks more and more perilous every day.

Turn off your TV!

Turn off your television and no longer watch the loons in Washington, D.C. or the crazy financial pundits talk about how they are going to fix all of our financial problems. As you can see by this article, a major U.S. bank has gone under. This is serious stuff. Lehman Brothers, a Wall Street investment bank, is also looking quite shaky. Remember, Bear Stearns became insolvent and went away a few months ago. May it rest in peace.

Mark my words: the government will step in and make things worse. They'll spin it and make it sound good, and they'll even blame the free market and laissez-faire capitalism. They'll say we're here to save the day, and only the Fed, acting in concert with Congress and the Treasury, can fix our problems.

Nothing is further from the truth! There will be more regulation and oversight, and things will get worse. The rest of this year and the next will be brutal. The market will get hit, more banks will fail, unemployment will rise, and the foreclosures will continue.

Start saving your weak dollars, which are only worth four cents. Don't buy that new car or big screen TV. You might need the money to get out of Dodge.

More political rhetoric

Speaker of the House Pelosi tonight after the decider-in-chief's State of the Union address: "We will work with the president -- where possible -- to bolster the housing market ... restore confidence in consumer goods ... and to give our workers and employers more tools to compete in a global economy."

1) How does the government "bolster" the housing market? What does bolster mean, in this context?
2) How does the government "restore confidence in consumer goods?"
3) What "tools" will the government give so that American workers can compete in a global economy?

Her quote can only mean one thing: a violation of property rights, by force, to provide the three above. Does "bolster" mean money? A bailout? Only if the government takes the money from us and gives it to distressed homeowners. A violation of our property rights.

The same with 2 and 3. Money from us to business, so somehow American-made goods are better and we have confidence in them? Money from us for what, retraining, so people have the "tools" to compete?

The entire quote is typical politician blather. It means nothing. Absolutely nothing. If this blather does mean anything, it's that you and I will have less money in our pockets.

A Joan Olsen bailout?

Seventy three year old Joan Olsen, as you can read in this article, admits she signed a stack of papers she didn't understand. Her payments were $788 a month and are now $847 a month. However, the payment could balloon to over $2,000 a month. Who's fault? She admits it hers (bravo to her), but the broker filled in her income as higher on the application. The district attorney should simply go after the broker, and Joan needs to find a new place to live.

Unfortunately, the government has, and will continue to, dream up bailout plans for people like Ms. Olsen. Why should you and I be forced to pay for someone else's mistakes? And it's not just Ms. Olsen, it's millions more.