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April 25th, 2010 | Author:

Well, not exactly, despite all the TV ads to the contrary.  As near as I can figure out from the Forbes article, the numbers look like this:

Uncle Sam gives GM $49.5 billion: $6.7 billion loan @7% interest + balance as purchase of 60.8% equity in company.

Uncle Sam puts an additional $13.4 billion in GM’s escrow account during bankruptcy.

In my math-challenged mind, this means the taxpayers have forked over a total of $62.9 billion.  (This does not include the $9.5 billion that Canada  “invested.”)

So how much of that $62.9 billion has GM “repaid?”  The initial $6.7 billion loan.

But … they need more money.  Knowing that another bailout would be less than popular, they’ve applied to the DEC for a $10 billion loan – at 5% interest, 2% less than the loan they just “repaid.”

As Forbes so succinctly put it:

In short, GM is using government money to pay back government money to get more government money.

If you or I tried this, 1) we’d call it refinancing, and 2) we’d get arrested.

Reality Check:. Because a billion has nine zeroes here in Amerika, I’ve used the” billion” word like the government does.  They do it to make it look like a smaller number.  I did it because if I typed it out each time, this post would be too long.  But here’s what it looks like just once:

1 billion = 1,000,000,000

April 05th, 2009 | Author:

Washington’s continued mishandling of the economic crisis has disquieted the electorate. The bad economic numbers, the precipitous decline in the stock market, the dramatic increase in government spending and the tax increases lying just over the horizon paint a picture of an out-of-control federal government grasping at straws in the search for solutions.

President Obama and his economic team’s proposals can be summarized simply as more borrowing to pay for more spending offset by more taxes.

If I were of a more cynical nature, I’d say that Washington hasn’t “mishandled” the crisis at all – they’ve done exactly what they set out to do, starting on 9/11/2001.

If I were even more cynical, I’d say that all the borrowing and spending and taxing is leading to the planned destruction of our country, as the powers behind Obama’s throne take control of all our critical businesses, from the banks being forced to take bailouts to the little farmers being forced out of business.

And if I were truly cynical, I would probably encourage you to go watch this video or download the pdf”s of The Hidden Dangers of the Rainbow and A Planned Deception.

But I really hate being cynical, so I won’t say any of those things.

Instead, I will update you on plans for the April 15th National Tax Day Tea Parties:

  • Albany, NY Tea Party – 11 am – 2 pm at the Corning Preserve (Albany Riverfront Park) This page has all the details, including directions, maps & parking info
  • Tax Day Tea Party – Online HQ for the April 15th Nationwide Tax Day Tea Party Rallies, including state links

And don’t forget to get your t-shirts and bumper stickers!

Category: bailout, Bill of Rights, economics  | Comments off
April 05th, 2009 | Author:

If you’d like to understand what’s happening with our economy – in just one page – go read this article by Pat Buchanan. Here’s an excerpt. [And, yes, the Fed should die.]

The “forgotten depression” of 1920–21 was caused by a huge increase in the money supply for President Wilson’s war. When the Fed started to tighten at war’s end, production fell 20 percent from mid-1920 to mid-1921, far more than today.

Why did we not read about that depression?

Because the much-maligned Warren Harding refused to intervene. He let businesses and banks fail and prices fall. Hence, the fever quickly broke, and we were off into “the Roaring Twenties.”

But, the Fed reverted, expanding the money supply by 55 percent, an average of 7.3 percent a year, not through an expansion of the currency, but through loans to businesses.

Thus, when the Fed tightened in the overheated economy, the Crash came, as the stock market bubble the Fed had created burst.

Herbert Hoover, contrary to the myth that he was a small-government conservative, renounced laissez-faire, raised taxes, launched public works projects, extended emergency loans to failing businesses and lent money to the states for relief programs.

Hoover did what Obama is doing.

Category: bailout, economics, Federal Reserve  | Comments off
March 02nd, 2009 | Author:

Sometimes, when you most feel like screaming or crying … ya’ just gotta laugh. is:

  • running a petition drive – saying no to bailouts, defined as “making us pay for corporate failures that are not our fault”

They explain it all this way:

The Deal

Here’s the deal. A bunch of jet-set corporate executives made bad bets for their companies and lost, big time. Normally, these companies would go bankrupt. This time, our government is taking money from our families to prop up these insolvent companies.
We’re not making this up.

TARP and the bailouts of Bear Stearns and Citigroup are just the tip of the iceberg. So far, our government committed more than $11.6 TRILLION to funding failed companies (that’s over $60,000 per family in America!), and has spent $3.8 trillion of that in just a few months. (Mouse over the circles below to see the details.)
Yeah, it’s really that bad.

What’s worse? It’s not making a difference. The line for bailouts is growing, and includes the telecom industry, airlines, as well as city and state governments.
We’ve got to do something.

Obama talks a tough game about bailouts, but his own stimulus package and his bank bailout proposal hand BILLIONS more of our dollars to failed companies.
Urge the government to DO WHAT’S RIGHT: Stop the bailouts!

Sign the petition and tell a friend now!

The topper is this video, which you simply have to watch. The best part is when they confront Chuck Schumer and he says, “rudeness won’t get you anywhere, guys.” You’ll have to watch it to see what they replied.

Category: bailout, economics, grins  | Comments off
December 29th, 2008 | Author:

Chris Brunner at has posted a list of all the banks in the United States, ranked by the credit troubles they may be having. The rating system is explained here, but basically if they scored 100 or more, they are in “very serious danger of collapse;” a score of 50 or over means they are “vulnerable.”

A big thanks to Chris for compiling all this information, which the banking industry doesn’t want us to have.

FYI, I am pleased to report that my bank scored a lowly 4 … not that many of their assets have my name on them!

And remember John Allison, the CEO I quoted a while back who had the audacity to throw darts at Paulson’s bailout of “poorly-run banks”? His bank, B,B,&T scored a lowly 5. We already know what happened to Goldman-Sachs, Paulson’s old bank. So who really knows about banking?

Category: bailout  | Comments off