JohnsBlog (articles, news, thoughts, advice)

Recently there have been stress tests issued to 19 of the major US banks in order to obtain information on their stability and capital.  In an article released today on bloomberg.com, it was mentioned that the results of these tests are being delayed for release several days as they are "debated".  This comes after the initial results were not released for fear that the results could "sway the markets".  If this is not the writing on the wall that clearly says our banking system is in extreme turmoil, I'm not sure what is.

In other news, Chrysler and GM seem to be headed straight for bankruptcy.  My question is, so what happens to the taxpayer money that was infused and supposed to be paid back by these companies?  Do me and you as taxpayers now directly pay the UAW, supporting their near $100K/year assembly line jobs and massive benefits packages, all while many of us struggle to support our own families?  I'm not sure how there's not more outrage at the governments recent actions...my only guess is that people are so busy trying to make a buck to survive and put food on the table that they don't really know the whole truth concerning whats going on.

Recently I paid a credit card bill a day late.  Not because I didnt have the money, but because Ive been so slammed at work, playing for 2 hockey teams and trying to make time to actually sit down and enjoy a meal every once in a while that I truly had no idea what the date was.  I went online promptly to pay this bill, only to see my brand new, shiny 29.99% interest rate and $39 late fee.  Really?  With the fed funding rate at 0-.25% at the moment, and a given interest rate of 30%, that leaves roughly.....lets do the math....30% profit for the credit card companies, on top of the $40 late fee.  Residential mortgage profits are capped at 5%.  A little disparity?  I think its more like a TON of disparity. 

So as of now, it seems that this is the gist of whats going on....our government is robbing us when we've got nothing to give, credit card companies are robbing us blind with no repurcussion, and the federal government cannot even tell us how the banks that they've infused nearly $2 trillion of our dollars into are doing.  If that doesn't bring about a minute bit of rage and contempt, I dont know what would.