For those of you fools including myself,(and I use the term "fools" in a pejorative sense, not in the joking way we use it among our investment community), who live within their means, pay credit card debt completely each month, have paid their mortgages nearly off etc., the continuing taxpayer bailout saga of wall street is galling. Continuing the precedent set up by the bail out of the overleveraged "long term capital" hedge fund in the 90s this taxpayer subsidy to wall street is just getting worse. (The name of this hedge fund is quite amusing as the term "long term" took on new meaning during its short lifetime. Examine the story on Wikipedia) As the article below demonstrates, risk has now been socialized to taxpayers, but profit is still private. (A novel, "feel good" form of capitalism) The latest bailout of the housing industry, and their wall street co-conspirators is a story years in the making. That sucking sound you will feel over the next few years is the outflow of global capital from the US to the rest of the world as we debase the dollar trying to solve a debt problem with more debt.

And what about those nice bonus checks going to the bear sterns execs, just 6 weeks ago which Jim Rodger's (co-partner with Soros of the Quantum Fund) talked about recently in an interview ? Do BSC execs have to give those back? No wonder they were golfing and playing bridge while the company was being destroyed. (Sort of explains the rapid appreciation of the swiss franc as they deposited their $ checks in their Swiss bank accounts) Any comments and more info on this would be appreciated.

I just hope the debt bond holders of BSC sue effectively and block this taxpayer giveaway from taking place. In the event of bankrupcy they would be due about $61 billion dollars. I would imagine they would have a very good suit.

Some financial advice out of this: go long the Swiss Franc just like the wall street execs.

Bil Fleckenstein has been discussing the topic of "catering to our bailout nation" for years but now may finally get some attention. I highly recommend the following article for more information.

http://articles.moneycentral.msn.com/Investing/ContrarianChronicles/CateringToTheBailoutNation.aspx?page=1