Let's do a quick summary of how the 'bailout' situation is unfolding:

Back in October Hank Paulson, Ben Bernanke and Greenberg put a gun to congress head and said "give us 700 billion now or the economy dies!!!! Don't think about it, we're only a few days away from the acopalypse, do it, do it now you idiots!!!" (imagine an Arnold Schwarzeneger accent for extra emphasis)

We do seem to buy that 'end of the world' bait hook, line and sinker everytime don't we?

The last time I can remember such high-pressure fear tactics used was when folks were making speeches that we couldn't stand around and do nothing about Iraq's supposed WMD's, because if we didn't the 'undeniable' evidence would manifest itself as a mushroom cloud wiping out our cities. But anywho....

This time, the 700 billion, we were told, was going to go to buy troubled assets.

Yesterday, almost a month after what was supposed to be economic armageddon, Paulson has turned around and stated that the 700 billion isn't going to purchase troubled assets after all, now it is going to be used to re-capitalize banks.

Whaa???

If this was such a dire problem that needed immediate money thrown at it, why, a month later, is the plan COMPLETELY changing?

"Oops, sorry. Even though I told you we needed this money for a particular purpose, I've now changed my mind. Now it's going to be spent differently, LOL!!"

Even if this new approach is the best solution, isn't it then terrifying that 700 billion was gladly turned over to this fellow with what would then be an inferior plan earlier on? Isn't it just a little bone-jarring to realize how completely out to lunch we are when we trust someone with the better part of a trillion dollars just 'cause he told us it was a good plan? Then, he tells us his first plan sucks, but his second plan is good so let's go with that instead?? What if he comes back in December and says he second plan was also bogus, but trust him, he's got it right with his third plan???

Does anyone else see how completely ridiculous this all is?!?!

Also, there's a few other little tidbits that haven't been highly publicized.

For one, the initial bailout wasn't 700 billion, it was actually 850 billion, as written into the TARP legislation was a 150 billion tax credit for the banks. And it aint over yet!!!

AIG had an extra 40 billion tacked onto their bailout

Why was it increased so drastically?

Because, apparently AIG is burning through it's initial 85 billion at record pace and they're concerned they might run out of money.

Well who'da thunk it?!? Imagine that. A financial institution that lost a massive amount of money due to sloppy management and dubious practices, is now continuing to lose money! It's amazing. Who could have imagined that if you give more money to a company that's lost all their money already, that they would continue to lose money!! It's mind boggling I tell you, and no one, not. one. person. could have seen it coming.

And AIG aint alone. Just about all of the big boys that have been bailed out thus far? They are burning through cash too at an alarming pace, again, who could possibly imagine that companies who were inept at handling their own money would continue to be inept when given more???

And to add insult to injury just about all of these companies haven't changed their practices regarding executive compensation. Meaning, their so called "hi-performing" execs who so expertly screwed things up and are continuing to screw things up, are still living high on the hog only this time it's the taxpayer that's directly paying for it.

So what does this mean looking into the future?

Lot's of other big companies have seen the benefits of getting free money from the public purse, and they want in!!!

American Express is now asking for a 3.5 billion dollar bailout. As if credit card companies haven't gouged people enough, now they want to gouge the government too. I'm sure they'll find some sneaky way of tacking on a hidden fee with interest penalties on it too!!!

Ford, GM and Chrysler are asking for 25 billion.

Yesterday, in addition to Paulson's sudden about face on the use of the TARP funds he also stated that the bailout would have to be further extended to MORE financial institutions!!!

So in summary:

We are told a massive bailout is needed or it will be the end of days, a clever ruse that appeals to the modern Judeo/Christian cultural appeal of the "end times" (comeon now, anyone who grew up going to a mainstream church had this same apocalypse mania drilled into them, I know I did)

We are told bailout is needed for key players who are too big to fail and that it will end up benefitting the public in the end as the public will be shareholders in the success these companies reap when they recover.

Also, we are told if we don't do the bailout, massive unemployment will result.

So we give them all the money they want, and these companies lay off employees left right and center while at the same time burning through all of this public money at record pace. However, executive compensation is hardly touched, and these companies come back asking for more money, while at the same time the architect of the original plan now says his first plan sucks and he has a new, better plan AND it needs to be expanded to other companies that have lost all their money as well.

Methinks I smell a turd blossom.