A $900 Billion Shit Sandwhich for the United States Taxpayers...

As I sit outside in lovely Atlanta I have a cold streak running down my spine. Our Federal Reserve has decided and not unanimously to bail out our economy once again with a repurchase of $900 billion of treasuries. Wow, ain't that nice. So who will benefit from this move?

It is pretty easy to see that this is just yet another shame move by our government to bail out the "to big to fail" banks. Let's start with the easy banks who will benefit first, Bank of America, JP Morgan Chase and Wells Fargo. Clearly B of A is the leader of the pact with a disastrous balance sheet that really should be called a comic book. B of A has good will write offs of well over $2.8 billion dollars and a stock falling faster than a speeding rocket. B of A is screaming "help again" to the Fed's....And the Fed's have heard the screams for help...Welcome QE2

With the approval of QE2 we now have a stock market on fire (thanks to computer trades) and a dollar sinking like the Titanic. Let's not forget that we are also pissing of the Chinese and Brazil with QE2. More excitment to help with this coming US economic disaster. We have taken the first step on the slippery slope and the next step looks like the creation of an avalanche. The US consumer is tapped out, unemployment is well of 20% and job creation in the US is non existent. So how does this story of QE2 play out?

We will see a bounce in the markets through the end of 2010 on computer trades and institutional trades. We will continue to see dismal dollar investing into 401k's by those that do have jobs due to fear of the markets and not being able to pay rent or mortgage. We will bypass inflation and head straight to deflation and then and only then will the Fed's state they are "out of bullets" and we do what should have been done long ago, let the capital markets work out events on their own....

I am out of the market now going majority cash and some gold. Other than that the rest of this market looks like the making of a huge shit sandwich that we the US tax payers will have to bail out...Good luck...

Citigroup to buy Wachovia banking operations!

My predictions are coming true. So far I am 100%. My next prediction; Fed's get bailout, savings help or whatever you all call this bailout approved. From there we will see a market crash like never before. Think about this, where will all this bad debt go and who will pay for it. You and me my brothers and sisters.

The idea of taking your money out of the bank and putting into your mattress might not be such a bad idea now. My other advice, wait before you invest this next couple of weeks.

By the way Wachovia did fail! It failed shareholders. Check out how much the officers of Wachovia made. They should all be ashamed of themselves......

Press Release: Citigroup will buy Wachovia's banking operations;FDIC says Wachovia didn't fail.

NEW YORK (AP) -- In the latest byproduct of the widening global financial crisis, Citigroup Inc. will acquire the banking operations of Wachovia Corp. in a deal facilitated by the Federal Deposit Insurance Corp.

Citigroup will absorb up to $42 billion of losses in the deal, with the FDIC covering any remaining losses, the government agency said Monday. Citigroup also will grant the FDIC $12 billion in preferred stock and warrants.

The deal greatly expands Citigroup's retail outlets and leaves it among the U.S. banking industry's Big Three along with Bank of America Corp. and J.P. Morgan Chase & Co.

The deal comes after a fevered weekend courtship in which Citigroup and Wells Fargo & Co. both were reportedly studying the books of Wachovia, which was suffering from mounting mortgage losses linked to its ill-timed 2006 acquisition of mortgage lender Golden West Financial Corp.

The FDIC asserted that Wachovia didn't fail, and that all depositors are protected and there will be no cost to the Deposit Insurance Fund.

Federal Reserve Chairman Ben Bernanke, in a statement Monday, said he supports the "timely actions" taken by the FDIC "which demonstrate our government's unwavering commitment to financial and economic stability."

Treasury Secretary Henry Paulson also welcomed the sale of Wachovia to Citigroup, saying it would "mitigate potential market disruptions." Paulson said he agreed with the FDIC and the Fed that a "failure of Wachovia would have posed a systemic risk" to the nation's financial system.

"As I have said before, in this period of market stress, we are committed to taking all actions necessary to protect our financial system and our economy," Paulson said.

The sale of the Wachovia assets comes just days after the government's seizure of Seattle-based Washington Mutual Inc. -- the largest bank failure in U.S. history. As details of its takeover unfolded, Wachovia shares plunged 91 percent in Monday premarket trading to 91 cents. The stock had closed Friday at $10, down 74 percent for the year.

Wachovia has been among the banks hardest hit by the ongoing crisis in the mortgage market. It paid roughly $25 billion for Golden West at the height of the nation's housing boom. With that purchase, Wachovia inherited a deteriorating $122 billion portfolio of Pick-A-Payment loans, Golden West's specialty, which let borrowers skip some payments.