That's Right....Shockwaves Keep Coming

Where do I start we have already been in uncharted waters for quite some time. But it seems that simply isn't enough these days as history seems to happen every day! American Express is now operating under a bank charter so it can have access to the discount window operated and controlled by the Federal Government. Otherwise, god knows what would have happened to that company. Folks this is just the beginning when it comes to these huge credit card companies that seem to do everything imaginable to keep individuals and families in debt. When families stop paying their mortgage, guess what? Their credit cards have already ceased getting payment or are not far behind. We will see a lot more news on this front in the coming months...guaranteed!

The auto industry looks to be getting some consideration from the U.S. Government in regards to some sort of bailout. Now let me go on record as saying I think this must take place. Think about how many thousands upon thousands the auto industry employs. Not just Ford, GM and Chrysler themselves but what about the companies that supply parts, technology, and materials to these companies? The auto industry, much like the housing and mortgage industry is critical to the U.S. economy! In fact if you look at history when the housing industry suffers so does the auto industry. Whether we like it or not these two industry's operate hand in hand and when one suffers the other isn't far behind. The housing industry has gotten and continues to get the much needed financial assistance from the U.S. Government and as much as I hate to say it the auto industry will need to stick it's hand out as well otherwise our problems will worsen to an extreme that would rival the Great Depression.

AIG gets ANOTHER $40B from the ever charity known as the United States. As if the first $80B wasn't enough and many analysts at that time projected they would be back for more. These huge financial companies operated on a credit basis only it seems as they all were extremely leveraged. No cash reserves considering the size, operating capacity and significance to the financial sector. It is simply baffling to me, STILL that companies that have been around for over 150 years (i.e. Bear Sterns) cannot make it through even two years of turmoil. Believe me I know things are bad perhaps worse than most people think but what happened to good fiscal accounting and savings plan?

Another item just hitting the news although not nearly as much as other happenings around the globe is the economy's affect on sports. MLB, NFL, NBA, Nascar and others are all feeling the pain as they plan for free agent signings, sponsors and their budget. Keep in mind they rely on us (the fan) to make their payroll and when we lack money to attend these events, they will lack the revenue to go out and pay huge dollars to these athletes. It's already being seen in Nascar as Ford and Chevy have "hinted" at the possibility of significantly pulling back in this ever growing popular sport. At the same time teams are having some what big problems in obtaining sponsors for their cars. In fact, some teams may have to have multiple sponsors for a single car because of the lack of cash that these companies are now spending to advertise. We truly are witnessing history with every passing hour, day, week and month. The economy is ripping through every facet of what once was seen as untouchable entities. Stay tuned things are going to get very interesting.

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