Tag: bailout bill

Forbes: Bailout Costs 5 Trillion… So Far

Yup… you read that right. 5 TRILLION dollars.

So far…

I recommend taking the time to go through and read every last detail in this article because there are little spending gems hidden throughout. Gems that you, most likely, wouldn’t hear about otherwise.

But the best part of this has to be the results… or, more accurately, the complete lack there of. After all lending between banks, which the government tells us is the most important problem, is still frozen even after interest rates have been cut by more than half. And it would appear the much touted bailout bill from October is nearly out of money to throw at the problem.

But, hey, take heart, the bottom is probably only another couple TRILLION taxpayer dollars away…

P.s. For more on the Massive Bailout Madness check out my earlier post. And for those who never saw this coming, check out Malkin’s latest.

UPDATE: Looks like the Massive Bailout Madness hasn’t helped stop or even slow foreclosures and some Senators are pissed at Paulson

Massive Bailout Madness!!!

In case you missed the first go round we now have the pleasure of a take two which shall be appropriately named:

Massive Bailout Madness!!!

Who are the stars of this sequel you ask? Well I’ll tell you…

First off, like any quality sequel, there is always one returning star. For this production that returning star happens to be AIG. The insurance giant wants billions more on top of the billions they received in Bailout Madness take one.

But, like any sequel worth destroying a country over, this sequel includes a few big name newcomers.

There is American Express who must have figured, “Hey, we suck at running our business too… why not?”

And the last star for this sequel, though you can be sure this certainly isn’t the last sequel (I’m thinking this could be a 5 part series), happens to be the big three automakers. Yes, that’s right, in a not so shocking move Ford, GM, and Chrysler have asked for and received a 25 billion dollar bailout… opps make that two 25 billion dollar bailouts.

Unfortunately the predictability and complete lack of direction combined with an overused and ultimately unsuccessful plot line (you know how it goes, Business meets bad management. Bad management drowns business. Government buys badly managed business. Government provides even worse management, as always. Economy explodes) makes Massive Bailout Madness absolutely unbearable. I am forced to declare it a turkey (and I mean on a Gigli level).

I much prefer the classic and intelligent; Business makes bad choices. Business doesn’t get free money. Business faces consequences of its actions. Business learns lesson and adapts or closes.

But, in an upside for those who prefer the story behind Massive Bailout Madness, I hear it is an extremely popular plot line overseas…

UPDATE: Rumor… Newspapers will be big new star for then third instalment of this worn out series?

It’s the end of the world! Oh wait…

No its not.

Not even close.

Yea the 778 point drop in the Dow is terrible, its even the biggest point drop ever according to CNN.

But that sure as heck doesn’t mean we are headed for another great depression.

Consider this, while the 778 point loss is the biggest point loss in history it is only about a 7% loss. Compare that to the stock market crash of 1987 where there was a 508 point drop which accounted for a massive 22.6% loss and there was no long drawn out depression which followed that incredible crash was there?

But, even beyond the crash of 87, today’s crash is relatively small in comparison with other market troubles of the past. After all, the 7% dropped we encountered today is only the 17th biggest drop of all time. This isn’t something that should keep you up at night, at least not as it stands now. Especially since this will most likely be sorted out in less than a week.

We should all know what is going to happen by now. It’s really quite simple and foreseeable. There will be news that another bailout bill is on the way, in fact there already is news of that, and the markets will regain some, if not a large amount, of their losses back. The bill will eventually pass since it doesn’t truly benefit either party to let these problems linger and that will reassure the markets and they will stabilize. Things won’t be good but they will be bearable again.

UPDATE: Oh look… the world isn’t coming to an end. Oh hey… what’s this? A stabilizing rebound of over 300 points? Who could’ve seen that coming?