Check Please

In recent issues of Bourbon & Bayonets I’ve discussed some of the costs of this bailout from an academic standpoint.  I looked at how this bailout was the result of Keynesian economics whether that’s what it was called or not.  A Keynesian run economy is one that may last for many decades before it finally tips.

The most blatant sign of a Keynesian based economy are the business cycles.  That’s right; the business cycle is not a naturally occurring process.  It is the direct result of liquidity expansions during economic downturns and liquidity contractions at economic peaks.

The excess liquidity results in a…

Where’s the Bailout Now?

The U.S. has been dishing out the bailout funds at a truly stunning pace.  It wasn’t too long ago when Fannie Mae and Freddie Mac received those first capital infusions.  Since then, so much money has been dolled out that it’s difficult to follow who got what money, and who the next recipient of government funds is going to be.

I want to take a look back into some of the specifics of the bailout, and where there at today.

Being that I mentioned Fannie and Freddie already, let’s start there.  The GSE bailout package gives the U.S. government the option to…

Government provides record aid package to AIG

By JEANNINE AVERSA
AP Economics Writer

(AP:WASHINGTON) In a record bailout of a private company, the government on Monday provided a new $150 billion financial-rescue package to troubled insurance giant American International Group, including $40 billion for partial ownership.

The action, announced by the Federal Reserve and the Treasury Department, was taken as it became increasingly clear that an original financial lifeline thrown to AIG in September would be insufficient to stabilize the teetering company. All told, the moves boost aid to the company to more than $150 billion. Fed officials, however, expressed confidence that the money would be repaid to taxpayers.

The $40…

The Current Crisis: Causes and Consequences

The Gold Report  

Adrian Day’s reputation for discovering big winners adds credibility to the global investing pioneer’s insights, which he is sharing with The Gold Report  via excerpts from recent articles in Adrian Day’s Global Analyst. Acknowledging what trying times these are for investors, in this first segment of a five-part series, Day discusses what led to the current economic crisis and how he sees Washington’s $700 billion (and counting) bailout playing out.

The Current Crisis—Causes and Consequences

The house of cards built on easy credit has finally come tumbling down, triggered by the failure of one of the most flimsy of…

Got Pork?

All of this pork was pulled from the table of contents of the $850 billion bailout. Here’s the United States of America’s congress hard at work. What a joke.

Sec. 101: Extension of alternative minimum tax relief for nonrefundable personal credits.
Sec. 102: Extension of increased alternative minimum tax exemption amount.
Sec. 201: Deduction for state and local sales taxes.
Sec. 202: Deduction of qualified tuition and related expenses.
Sec. 203: Deduction for certain expenses of elementary and secondary school teachers.
Sec. 204: Additional standard deduction for real property taxes for nonitemizers.
Sec. 205: Tax-free distributions from individual retirement plans for charitable purposes.
Sec. 304: Extension of look-thru…