Economics and Investing:

Treasury Secretary Tim Geithner’s planned “Son of TARP“, also dubbed “TARP 2.0” bank bailout is rumored to be more than twice as expensive as the first round that was enacted in late Aught Eight. This is more evidence that the Mother of All Bailouts (MOAB) has no limits, and will not end until the the taxpayers are on the hook for decades of substantially higher taxes and not before the value of the Dollar is reduced to near fire-kindling status.

Thanks to Brandon S. for these two items that he spotted in the Alabama media: “Here is what happens when counties make poor financial decisions. Special Masters Recommend Non-User Fees to Pay Off Sewer Debt, and County commissioners [in a bankrupt county] fear for their safety and ask for off duty police officers to watch over them.”

JHB sent this: [US] Federal obligations exceed world GDP: Does $65.5 trillion terrify anyone yet?

G.G. sent us this one from The Financial Times: Eurozone slump worst in 50 years

From D.D.: Ruined financiers committing desperate acts

Items from The Economatrix:

What The Stimulus Bill Means to Us Here is a quote: “For the average Joe Citizen, it doesn’t look good: $13 per weekly paycheck (if you have a job) and tax breaks that appear to be for those who still have money for cars, houses and education. There’s a few extra dollars for food stamps, some Medicaid prop-up, some jobs…amazingly ineffective and not likely to ease the situation. Whoever said “anything is better than nothing” is totally wrong in this case, considering the bill the taxpayers will end up with.” JWR Adds: Lest anyone deceive themselves, any transfer of wealth orchestrated by government requires both a recipient and an individual who’s earnings are being expropriated. (See today’s Quote of the Day, from Kenneth W. Sollitt.) The money can’t come out of thin air. and when you consider the inherent inefficiency of government, this is even more of an insult than direct theft. At least when a robber sticks you up at gunpoint, there is the assurance that Mr. Badguy gets all the money that you are handing over. But when the government gets involved in the “fairness” racket, only about 50% of the tax funds reach the intended recipients. The rest is consumed in overhead.

1 in 9 US Homes Vacant

The Coming Crisis: White Collar Homelessness

US Stocks Fall Again

US Auto Parts Industry Wants $18.5 Billion Rescue

Why Geithner’s Bailout Plan Got a Bronx Cheer

Trillions? Get Ready for Quadrillion!

Projected Jobs Numbers Don’t Quite Add Up

Geithner Faces Tough Debut at G-7 Meeting in Rome


Stocks Sink on Uncertainty of Stimulus Plan


S&P Heads to First Ever Quarterly of Negative Earnings

How to Invest When Stocks Aren’t Going Anywhere

$100 Bills as Toilet Tissue?

Chrysler in a Crunch

Some Banks May End Up Nationalized, Analysts Say