jerwin

Gov't Throws Out Another $800 Billion, Tab Now $8.5 Trillion

By Jim Erwin | 11/25/08

Hot off the press, the government printing press that is. Another $800 billion in guarantees to Wall Street.The money drug addicts can't help it. It just feels good to throw out big numbers I guess. It's a sad situation indeed. The three musketeers, Bernanke, Paulson, and Bair are now guaranteeing consumer debt in an attempt to get lenders to extend more credit to cash strapped borrowers. How government believes that consumers... read more »

Financial Meltdown Worsening

By Jim Erwin | 11/24/08

It's been some time since my last article on the economic and financial meltdown that grips the world economy. Here is some of my observations.Amazingly, the U.S. Government still continues to spend like a drunken sailor. Guaranteeing every company, while letting so many villains off the hook. Using the term "Too big to fail" like it was a household phrase. Believing that taxpayers will never figure out they are being played for... read more »

Mr. President: Please Look at What's Happening

By Jim Erwin | 10/18/08

Mr. President, I write this article to implore you to reconsider the direction your administration has embarked in attempting to try and reverse the economic downturn the nation and world now face. Time is running out before you leave office in January and things don't look too good.I could rattle off all kinds of statistics and economic theory, but after reflecting for a week or so, I think it's best to keep it simple.It seems Mr. President,... read more »

Disgraceful: Another $38 Billion for AIG

By Jim Erwin | 10/08/08

The insurance company AIG, a recipient of an already tapped out $85 billion Federal Reserve rescue, is set to receive another bailout in an amount just under $38 Billion. This new taxpayer rip-off comes on the heels of reports that AIG executives went on a junket in the days following the original $85 billion rescue.The report of the expenditure totaling an estimated $440,000 was for services at the elegant St. Regis Resort... read more »

McCain Needs to Seize the Moment

By Jim Erwin | 10/05/08

Now that approval of the Trillion dollar give-a-way that won't accomplish anything is accomplished, it's time for Senator John McCain to seize the moment and demand accountability.McCain, the Republican nominee for President needs to capitalize on the Wall Street debacle by laying out a plan, that if he's elected, would make crystal clear what should be done to hold those responsible accountable for their actions. McCain needs to talk... read more »

Hello, It's the Economy Again, Stupid!

By Jim Erwin | 10/01/08

It's a bird, it's a plane, no it's the financial system rescue plan, a.k.a. the "bailout". Portrayed like some silver bullet against a failing financial system, the $700 billion, oops! I mean $800 billion bailout, taking into account the new Senate improved add-ons, will have little effect on anything should it pass the House of Representatives this Friday.The reason? Bad mortgage-backed securities and their underlying loan defaults aside, it's... read more »

Washout Continues: Wachovia Fails, Regionals in Peril?

By Jim Erwin | 09/29/08

I guess I have been too pointed in my commentary on the National site. Whatever, it is what it is. When in actuality, all I have been trying to do is make a case in regards to the economy and financial markets over the past few weeks. The point being that we are at a crossroads that is now playing out. Let's face it, Stevie Wonder could have seen this mess coming. You can actually look at the face of the every regulator... read more »

Another Collapse: WaMu Fails, Next Up Wachovia

By Jim Erwin | 09/27/08

Look out for Wachovia to be the next victim as a result of suicide lending practices. Now that WaMu, the nation's largest thrift and loan with over $300 billion in assets has fallen, expect investors to focus on Wachovia. Like WaMu, Wachovia generated billions in bad loans. What makes thing bad at Wachovia is known as "Option Arm Loans". This type of loan allows the borrower to set their own payment on their mortgage.... read more »

Proposed bailout has no cap

By Jim Erwin | 09/23/08

I thought I had seen everything until I looked at a copy of the U.S. Treasury's $700 billion bailout plan language. The language contained in section 6 of the document pretty much says it all. The section reads as follows.   "Sec. 6. Maximum Amount of Authorized Purchases." "The Secretary's authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time"   The language... read more »

Financial Markets: Time to get out!

By Jim Erwin | 09/22/08

Investment banks Goldman Sachs and Morgan Stanley converting to bank holding companies today, after an emergency consent by federal regulators is a sign that the two firms were moving rapidly towards insolvency. Congress debating what now appears to be a bailout package likely to rise from the original $700 billion, to possibly trillions of dollars, should the scope of the bailout be expanded to all forms of junk debt... read more »