Faith and Facts

The $700B bailout contains is now over $800B. Why? It contains BILLIONS of dollars in pork-barrel spending. About $112B to be more exact.

Lawmakers from both sides of the aisle are out of control on this. This entire problem could have been handled by the FED and market forces. It did not have to be lubricated with 16% pork.

America will become a debtor nation at this rate.

Here are some predictions for you to tuck in your electronic back pocket.

1. Credit market problems will require more than just an injection of funds to become fully functional again.
2. The FED will have to change the capital reserve ratios to keep us afloat.
3. $700B is not enough.
4. Consumer credit debt is next; or at least soon.
5. Any rally in the Dow will be short-lived.
6. Fannie problems have not finished their impact on overseas markets.

Further reading:

Billions in earmarks in Senate’s bailout bill

Bottomless Bailout

Kick the Ant Hill

NOW They Tell Us

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Filed under: Economy, subprime