Syl

Big Cap Financials Are Scary

When I think of BAC investing $6 Billion in a Chinese bank after getting a $15 Billion bailout, I say there should be more control of how this money is spent.

Two things happened---one our highly paid beaucrats in Washington were asleep and BAC made a ludicrouse use of this loan. Will this $6 Billion purchase become a gift to that Communist nation? Remember, the government of China could nationalize their banks over night and take control all assets.

Did you know it would take one a lifetime to count to six billion? I once offered any student $20 who could write to one million during their Spring break. Some tried but after two days they gave up. Now, how much is one billion?

How Will Banks Spend Their Bailout Money?

Congress has opened a Pandora's box and now has no idea how to close it.

The automotive companies were second in line for a handout and now cities and their lobbyists are descending on Washington with hat in hand.

Did any of these companies try to re-negotiate contracts and reduce long company paid vacations and high hourly salaries? Surely these workers would rather lose a little that would save their jobs. GM, Ford, and Chrysler will be right back with these same problems unless they can learn to build better cars at less cost. A bailout may be the answer for maybe a year and by then the above companies will be back wanting another bailout.