Banks Want to Give Bailouts Back

Headlines

· Stock markets rose for third consecutive week.
· Treas. Sec. Geithner outlined program to deal with toxic assets.
· Geithner proposed massive financial market regulation.
· President to increase troops in Afghanistan.

Economic News

· Existing home sales increased 5.1%.
· Durable goods orders rebounded 3.4%.
· New home sales increased 4.7%.
· Consumer spending rose 0.2%.

Banks want to give Bailout Money back to Government, that would be us, our money? In lieu of the AIG events, who wouldn't want to give the money back? Sun Bancorp announced filing paper work to return the 89.3 million they received.

JP Morgan, Goldman Sachs, Citigroup, Bank of America, American Express, Morgan Stanley and 9 other Banks met with President Obama at the White House to discuss how this decision would "look" to Americans. The strong banks give the money back and the rest of the banks look as if they are not financially strong? What message would that send? Many want the money returned/paid back/given back by the end of the year.

WallStreet Journal Article

Click the link below to see a recent article in the WallStreet Journal by the Financial Diva Victoria Woods (also published in Forbes Magazine and Reuters).

WallStreet Journal Article

For a little somethin' extra, click the link below to see...

What a Trillion Dollars really looks like

Voice Your Opinion

Your participation in our "Diva Poll" was remarkable!

What this says "loud and clear", Americans want their Voices to be heard!

Click and Vote:

Do You Have a "Bail Out" Plan?

Can we ALL Agree on anything?

Yes, yes we can!

A day doesn't go by that I don't hear ,"Victoria, nobody paid my mortgage, nobody paid my car payment, paid my school loans, paid my business loans or bailed me out when I put living expenses on a credit card or bought a house I couldn't ever afford. I am the responsible one who has lived within my means managed my money well and I have to work harder for less and "bail out" those who chose to be irresponsible".

My response is always the same; "you have every right to be angry, outraged and disappointed. I will not attempt to justify the attempts the people we send to represent us are making. We all know they are wasting our money (pork spending), time (watching you bicker like children) and opportunity (to clean up the corruption in Washington).

The following is and email I received this morning:

"As I watched our president last night I realized that I'm obviously not paying enough in taxes and that some people actually "have to work for a living". This travesty perpetrated on the masses can't continue. I obviously need to do my part by making more money so I can pay more taxes enabling his supporters the ability to enjoy life more with no cares about paying for a home, food, education, healthcare or taxes." D Ellis

My response, "you are not alone, however, I understand that is no consolation".

We will survive this. This too shall pass.

The good news:

* Dollar Index is up, largest since April of 2006, .66%
* Personal Income is up .4%
* Consumer Spending is up .6%
* Personal Savings is up 5% - largest increase since
March 1995, yes, this is a whole number, 5%.

Friday I participated in a conference call with panelists from Genworth Financial Asset Management, Goldman Sachs, Litman Gregory and JPMorgan offering their perspectives on the current market volatility and the long term prospects for recovery.

Recap:

* Market continues to fall; Lack of Leadership
* Success of the Stimulus-feel optimistic, believe the size and speed (unlike Japan, which lasted 10 years) is going to help recover much more quickly
* Incredible Opportunities

* US was first in and predicted to be the first out of the decline

* Convictions of the many tactical changes to portfolios will be rewarded
* Expect 2009 to be the same roller coaster ride; market is up 400 and down 280, as suggested 4th Quarter of 2008
* Demographic researchers are predicting sharp rises and falls, with a bounce between 11,000 and 12,000
* This is not a cause to abandoned Fundamentals
* Managing very proactively with great sensitivity

Recent Polls

I recently added these polls to my Website. Feel free to participate...I find them VERY interesting.

1. Do you believe GM/any other auto maker should be "bailed out"?

2. Do you believe the "Pork" (wasteful, unnecessary spending)?

3. Do you think the stimulus package is fair?

Is The Glass Half Empty?

Who are You?

Are you "The glass is Half Empty or Half Full" person?

One thing we do know we know who Warren Buffet is, "A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful", Warren Buffett.

Did you feel more comfortable investing when the market was at 14000 (High), or now when the market is at 7500 (low)?

Generally, we tend to "feel" most comfortable with, and choose to buy investments, that have begun to develop a positive track record or those that have already gone up. Conversely, we are less comfortable with investments that are currently "out of favor" or are down in performance and tend to either sell these or avoid buying them. This 'cycle of emotion' is common.

Do you believe:

This is the Buying Opportunity of a Lifetime?
or
This is the Time for Panic and Fear?

Would Captain "Sully" have been able to land that plane safely in the Hudson if he allowed panic and fear to overcome him? We all know the answer.