$25 BILLION In Auto Loans Part Of Bailout

Incredibly, it's not just houses that are in desperate need of help. Auto manufacturers also are in need of a helping hand. $25 billion worth. Who's going to pay that? It's like the government just got laid off and is forced to use their credit card. Once they get done with this, we'll have $15 billion in there for new shoes too.

Just wait until we have to pay the first minimum payment to the Bank Of China.

EPA Says Rocket Fuel In Your Drinking Water Is Not A Problem

Seriously?? Does the government have any credibility left?

So we should mix up some Perchlorate baby formula with some rocket fuel water and put it in our Bisphenol-A baby bottle. Add some fluoride in their too for good measure.

EPA against limiting rocket fuel ingredient in water

Congress Balks At Massive Corporate Welfare

Wall Street will be sure to punish them shortly with a horrendous roller coaster ride for their reluctance. Then they will then quickly relent (probably before the week is out) and give their 'approval' for something that is already completely outside their control. Clearly the Fed is running the show here, with the ability to buy up massive corporations and chain US taxpayers to the debt. As Ron Paul said, Congress should just go home since they've abandoned their duty to the populace.

In the end, it won't matter. This bail out plan wont' fix whats wrong with the world's economy. What's wrong is that there are too many houses that were priced in a fantasy world, over leveraged by their current owners and now out of reach of most buyers. Add to that new due diligence on behalf of lenders, and you've got yourself a pyramid scheme that's reached its apex. The fed thinks if they can just get new suckers to buy into the fantasy pricing everything will be 'ok'. It won't.

The only way to fix this is to lower housing prices by either devaluing the dollar or letting the housing market crash because what supported it previously was fraud, plain and simple. Devaluation has it's own problems, as we've seen with the oil markets. Not to mention inflation will cause mortgage rates to rise, so in the end, it will be self defeating.

The only thing Paulson's plan will do is give some on Wall Street a chance to take back their gambling bets. To be sure, it will only hurt you and me. But as Paulson sees it, that's going to happen anyway, so he might as well try to help his buddies.

Bankrate Says: If the Ship Is Sinking, Rent More Deck Chairs

Tonight on the local news I saw a BankRate authored piece about how you shouldn't panic in the face of the current market 'volatility' and that you should instead use this time as a way to "dollar cost average". This has been the standard response to jittery investors: If the price is dropping and the stock is fundamentally sound, it's a great time to buy more!

But the devil is in the details. Nothing in this current market is fundamentally sound. They even trotted out the old "If you'd invested all your money in 1950, even with all the ups and downs you would have made this huge sum of money!" They of course, never mention what would have happened if you'd invested all your money on Monday October 28, 1929.

And sadly, that is the type of unusual event we're looking at. It's not as if there's been some huge price shock to our economy. The 70's oil embargo explained the economic downturn then. What explains this one? Alan Greenspan's "JUST GIVE IT AWAY!!!" monetary policy clearly shares a large part of the blame. He kept interest rates so low for so long it was inevitable there would be a bubble of some sort (in this case, a real estate bubble). I have to chuckle every time I see him on TV saying that this is a once in a lifetime event while making it appear he had nothing to do with it.

The fundamental problem that is haunting our economy (and by extension, the world's economy) is that the US is broke. It's hard to imagine, but we're borrowing money left and right from other countries like China. All the wars, all the bailouts mean that the taxpayer, the engine of the economy, is being saddled with more and more debt when they can't pay back what they already owe. China and Arab nations, now flush with dollars which are loosing value every day, are looking to purchase more and more of the US's remaining assets. Although, for the life of me I can't understand why anyone would buy a failing, poisoned bank and not, say, a milk production company or perhaps some of our coal mines/natural gas fields.

Peter Schiff, who has consistently been correct in his predictions of the US economy (despite being called a "prophet of doom" and just an overall 'buzzkill') thinks that foreign stocks priced in foreign currencies (he recommends Asian securities...no surprise) are a good place to stick your money. Maybe. But if banks fail because their borrowers don't pay back, our lenders (China principally) are going to be in trouble too.

In short, there's nothing normal about the current economic climate. And in spite of all the bad news, the market was actually up today. Why? Because the government has floated the idea that it will create an 'entity' that will take their bad loans off of their hands. How incredibly ridiculous is that??? So the government takes on bad debt. Then what? They will be paying the banks dollars in exchange, which will then spread the illness further to our already declining currency. The ridiculousness of these ideas should be enough to demonstrate just how desperate the situation has become.

And in the tradition of the Grand Master, I predict the next big shoe to drop will be the sudden confessions of multiple companies and government agencies that their retirement/pension plans are catastrophically underfunded. And the 401(k) lawsuits are just starting too. Fun.

Can It Get Worse? Yes!

The FDIC is now going bankrupt. And we haven't even started to see major banks fail yet.

Everyone! Make An Orderly Line At The Trough!!

Uncle Sam is giving away cash! Actually, he's giving away your cash. CNN is reporting that AIG is the latest recipient of a government gift. A mere $85 billion "loan" (apparently that's what you call it when you give it to a compulsive gambler who's luck has temporarily gone bad). In return the government gets an 80% stake in the company. There's something strangely ironic about an insurance company that made money hand over fist for assuming risks then -when things go bad- they pop their golden government parachute. Kind of like discovering that Mili Vanili didn't really record that album you bought (....you know it's true).

And this brings up an interesting question. Why are we still angry at Fidel Castro? We're nationalizing the private sector faster than he ever dreamed of. In 1997 dollars, he only nationalized $6 billion in US assets in 1960. We're way beyond $6 Billion just this week. So much for the free market, eh? Maybe the US should get into the automotive, airline and home construction businesses too.

These giveaways currently add up to a total of $900 Billion in giveaways in less than a year. And man, Paulson's just getting started! It's interesting to note that Paulson has close, personal ties with China. Maybe he's the economic Manchurian Candidate?

But to be fair, it was our friends and neighbors (and perhaps "us"?) who got us into this mess. The True Believers who thought the housing market could only go up. and up and up. So why not take out that 3rd home equity loan and take a 6 month tour of Africa? We can't lose!

So, in the next few weeks, I'm sure the sound will get louder and louder....The Giant Sucking Sound of the American Dream being foreclosed upon and the collapse of America's free market facade.

Nancy Grace has Leonard Padilla On Right Now

He seems about as smart as she is. At least Leonard now realizes Casey Anthony is guilty. Something everyone else figured out about 2 months ago.

2 mins of Nancy Grace is better than Ipecac

When Did DIGG Turn Into An Obama-Biden LoveFest?

Of the top 10 stories on DIGG, 7 are pro Obama and anti-McCain. I'm pleased to see that 1 is a pro Ron Paul story. Now I know how all those people felt when the Paulites took over Digg.

Check out these current DIGG titles. I'll be happy when DIGG goes back to the nerd crowd (will it ever??)

• Palin's church says Jews deserve to be victims of terrorism

• FactCheck: McCain Ad Continues Lies about Obama's Tax Plan

• 8 More Shocking Revelations About Sarah Palin [Perhaps she is hiding other people's babies??]
  

• Palin Slashed Funding for Teen Moms

• McCain's New Palin Strategy: Blame The Media

• Sarah Palin's Corrupt Mis-Management of Dairy in Alaska

Wow... A Decent Episode Of A Paranormal Show

I really enjoyed the episode of Ghost Hunters that aired tonight. Episode 414, "Iron Island"...check it out if you get a chance.

Out of all the paranormal shows, Ghost Hunters is probably the best, mainly because of their mostly skeptical attitude. I might watch the next one.

Paranormal State on the other hand, just gets flakier and flakier.

The Internet Finds A Conspiracy With Sarah Palin

So the latest tabloid story on the internet revolves around the seemingly odd time-line of the birth of Sarah Palin's most recent child. "Liberal" bloggers have really ramped up the story that Sarah Palin's most recent child was actually her grandchild, and that there's a massive conspiracy to cover up the teenage pregnancy of her own daughter. It's interesting to note that the allegations are not new. People were making them as early as March of 2008.

There are some unusual circumstances. True or not, we need to remember that it was the Daily Kos that pushed the story. It's a big gamble for them. If it's true, they'll look like the Drudge of 2008. If they're wrong, they'll be branded as the site that dragged a candidate's children into the fray (including an infant child with a serious health condition), which will make them look really, really sleazy.