How much can the average American Joe take, as their political leaders show greater willingness to feed the rich and care little for the everyman? After the September 11 attacks, Americans where asked to go out and spend. The strength of American was in its ability to spend money like there was no tomorrow. As [...]

More bailout money might be needed for the US automakers, and although “I Love me some chevy’s”, I don’t get the point any more. It would be cheaper for all Americans to just buy the cars directly for full MSRP prices then to continue to throw money at these companies. At some point, and I [...]

I read two articles today that pertain to General Motors and the fight going on between the US government (on behalf of taxpayers) and prior creditors. �
Everyone is fighting for first position in line when General Motors goes into bankruptcy. �
Read the articles:
The Huffington Post – Crysler, GM Bankruptcy Looming in Detroit
The government has known [...]

If it does not work the first time, it must work the second time. The trick is to not learn from your mistake, just keep making them. At least that’s what it seems is happening in this latest development of how the TARP Money is being put to use.
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GM will once again have a [...]

An article featured on Forbes.com by Dan Gerstein, Chrysler’s Hidden Coffers, highlights the real story behind Chrysler’s begging.
The Big Three are asking for a bailout to prevent shutting down.  They want to prevent job loss, and prove that their interests are in line with that of the US taxpayer.
Wait, Chrysler is actually privately owned. �
Cerberus, [...]

Recently we have thought about changing our name to reflect what ever the current industry in crisis was, but since that just about everyone, we will stick to Whybanksfail.
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It looks like GMAC, which was trying to get additional bailout funds by converting to a bank holding company has failed to meet reserve requirements. Lets [...]

Alan Kohler, of Business Spectator, wrote an article A tsunami of hope or terror?.  The article covers what will happen if more companies go under.
The Breakdown:

A synthetic CDO cataclysm could save the global banking system (with horrible consequences)
Investors and funds worldwide will be collateral damage
Banks paid external entities (usually Cayman companies, or charities) to back [...]

When talking about stocks for the past few weeks I have been using the term “time travel”.  We can buy stocks for prices that we haven’t seen in years, or even decades.  Who wouldn’t like that?
General Motors (NYSE:GM 2.92 on 11/12/2008) closed at $2.92 yesterday.  A price we haven’t seen since 1943.  The last time [...]

It seems that time is running out on General Motors Corp (NYSE: GM 4.36 11/07/08), as the current economic crisis is causing more hurt in the budgets of middle class Americans, people have stop buying cars. GM says that they are on course to fall significantly short of the cash they need to continue paying [...]

In another move that should scare even the most optimistic economist (is that an oxymoron?), Fidelity will cut nearly 1300 jobs this month (as reported by CNN Money, Fidelity to cut nearly 1,300 jobs).
According to the article, a second round of layoffs is planned for the first 3 months of 2009. �
With all of these [...]