Our Financial System Has Gone Mad

The race is on as insurance giants such as Met Life, New York Life and Prudential try to get a piece of your bailout money.

It's easy to see why it's so tempting to them. In September the government provided insurance mega-giant AIG with $85 billion, a staggering sum of money. But even that wasn't enough. AIG just received another $38 billion commitment and now has access to $123 billion of your money.

The nine biggest U.S. banks just received $125 billion whether they needed it or not and 20 more huge banks are in line for a bailout, as are many smaller banks.

This bailout money is intended to secure the banks that need it and get them all to lend, but in many cases you'll see the strongest banks use some of the money to buy weaker banks in what will become one of history's biggest bank consolidations.

With the sharp drop in competition for your business you'll pay higher fees to conduct your banking.

They saw Fannie Mae and Freddie Mac fail on a grand scale and get a $200 billion government guarantee and as necessary, a capital infusion. Speaking of grand failures, they saw General Motors quietly pocket $25 billion and apply for more. And Ford and Chrysler are right in back of them.

In fact the U.S. auto industry "Big 3" are in such a colossal mess, General Motors and Chrysler, the latter company notorious for building poor quality vehicles are in talks to merge supposedly to save them both. In other words, two terribly run firms combining two complicated and conflicting cultures will somehow become a solid corporation.

Ironically, a government bailout is bad for many of the firms that receive them. They won't learn from their mistakes nor are they forced to call upon their resources, their abilities and their employees to resurrect themselves. There is no rebirth, no enlightment, no moment of truth.

Instead, there is a government handout because these companies pay lobbyists to protect them.

But take heart. We have each other and we will get through the possible collapse of our economy. And we can change our government, one that currently rewards massive corporate greed at the expense of deserving families in need of a helping hand.

Throughout history, it is catastrophic events that bring real change, for like a giant earthquake, they shake us out of our comfort zones and force us to find more effective ways to function. It will this time as well.

Dick