And for those people who have yet to hear about the details of the Geithener's plan to bring American Financial Stability to it's own funeral- here is my rendition of it.
The 3 part plan is as follows:
PART 1. Gov't + Biz back (bad) loans so that we can purchase toxic bank assets with what is left of our 401Ks.
PART 2, TALF makes loans to investors to purchase junk consumer debt (making it easier for us to purchase the toxic bank assets.
PART 3, The FDIC (yep, the people you trust to back your money in the bank)makes loans to purchase Toxic bank assets.
Theoretically these 3 pieces are supposed to assure the banks get good money to sell off their bad assets.
And who is the bottom line consumers of these toxic assets? We are- 95% of them coming from our hard earned income tax and 5% coming from what is left of our 401Ks.
The 95% really bothers me- the 5% will lead some crazy investment people to invest and say it was "Good" because the loans are backed by the Gov't. Meanwhile the Gov't is throwing in the 95% by printing more money (that are backed by the toxic assets) and leading down a fun road of hyper inflation.
The bottom line is : Bank's bad assets to US (the US taxpayers)
It also will equal a nice little small latte for $100 a cup.
I think I will invest in something that inflation won't rip apart- like maybe food storage and a garden.