Monday Morning do you know where your money is?

News today that Bank of America is going to buy Merrill Lynch both were participants in the sub prime mortgage meltdown that we tax payers are now paying for. How did this thing start? Bob can explain it.

Fear, greed and tears

"The Federal Reserve cut a short-term interest rate yesterday to try to keep problems in the housing and mortgage markets from dragging the nation into recession, but Wall Street judged the move as too timid and financial markets tanked. "-Washington Post

Only on Wall Street can good news be looked on as bad news because greed seems to know no bounds. Meanwhile:

"The chief executives for two of the nation's dominant mortgage-finance companies traveled to Wall Street yesterday and delivered competing words of regret for having to take painful steps to shore up their businesses.
The two government-chartered firms recently cut the dividends they pay shareholders and borrowed billions of dollars of relatively costly capital to stay in compliance with regulatory requirements and ride out the turmoil in the housing market.
"We wanted to dilute the common shareholders like we wanted to shoot ourselves in the head with a gun," Richard F. Syron, Freddie Mac chairman and chief executive, told a gathering of investment analysts.
"I wanted to cut off both my arms, and both my legs, and my head and my kidney," Fannie Mae chief executive Daniel H. Mudd said later in the day. "

TRANSLATION: We felt bad all the way to our second homes.

Nukes in the news again.

Yet another article talking about the comback for the nuclear power industry in today's Washington Post. The industry that brought you the most expensive way to boil water wants another chance. Just guess who they want to help pay for it? Hola sucker taxpayers! Here are some of the money quotes:

"The nuclear industry has been lobbying Congress to expand it to $50 billion or more. A Senate appropriations bill would remove the ceiling altogether. "

"For each nuclear plant seeking federal approval before the end of 2008, the act provides tax credits of up to $125 million for eight years, loan guarantees for up to 80 percent of a plant's cost, shared application costs and insurance that would cover the costs of regulatory delay.

Nuclear plants also receive other subsidies, including local tax breaks and limits on liability for catastrophic accidents. "

"Even if every plant could get loan guarantees for 80 percent of its cost, Crane said, projects would each require more than $1 billion in equity. "That's a lot of money at risk,"

Risk you say? Have anyone who is even thinking about a nuclear power comeback read the THE MEMO?

Stock Market wisdom

Stock Sell-Off in China Hits Wall Street Dow Tumbles 3.3% in Biggest Loss Since '03

-Washington Post headline

IF A LITTLE DOES NOT GO, MUCH CASH WILL NOT COME

-CHINESE PROVERB