The Hairy Armpit Gang (HAG) works for their own best interests. Don’t get blinded by their alleged pedigree — education, supposed knowledge, or white collar persona. The Hairy Armpit Gang is made up of crooks. They are predators. You need to protect yourself to not become a next victim. You must take a leaf from their operating philosophy and work for your own best interests.

The HAG is another reason why you want to learn more about money. Why you must understand more, ask questions until you understand the issue, and feel confident enough to take care of your money. Then you can begin to trust. And verify (the information received, your account balance) often. No one will do it for you.

Financial Fraud Is UnAmerican

Financial fraud is bad. It hurts people and screws up our economy. The fraudsters do not care who gets caught in their trap. Financial fraud is fundamental disrespect for all of us.

If the fallout of the $700 Billion financial bailout package has not been made clear to you, let me share my thoughts. My mini rant. Listen up.

We are bailing out people and corporations who knowingly traded worthless securities around the globe. They HAD to know the value of packaged sub-prime securities was decreasing, and would continue to do so. They HAD to know the significant risk inherent in this class of securities. They HAD to know that some banks, investment houses and others would be left holding a bag of worthless paper.

What’s UP with that? How do you deliberately make decisions that will hurt the economy in your own country? What manner of privilege allows one to think he or she has the right to screw the people and the country? I don’t get it. Maybe I can’t get it because I’m not a member of this privileged American minority group. However, this reminds me of the insensitive arrogance of the corporate boards of directors that decided outsourcing American jobs was a viable way to grow their businesses. Whose best interests were they maximizing? What were they thinking?

What makes us think we can trust a bunch of self-serving, highly-privileged guys without regulatory oversight of their actions? What victim mentality allows us to delude ourselves into believing our monies are safe with these people? What naive part of us would have assumed they would “do the right thing?” Puhleese.

As the economy weakens, the unmasking of financial fraudsters will grow. There will be more like Bernard Madoff, “The Most Hated Man in New York.” Madoff was charged with one count of fraud last week, having confessed to creating a huge Ponzi scheme with estimated losses of $50 billion.

My Mom always said, “God bless the child that’s got her own.” I add, God bless the woman who knows how to manage her own.

Insurance giant American Insurance Group (AIG) is Back! Begging. Well, not really begging. Playing its Mo Money cards.

As predicted here less than a month ago, AIG is asking for another government handout. Or is it a hand up?

The ante up amount is $40 Billion more. The government is hedging this questionable move with it’s an equity infusion. We the American public are going to buy shares in this corporation. Doesn’t everyone in their right mind want to buy stock in what is apparently a poorly-managed and inefficiently-run corporation. A corporation that will need more emergency funding in the near future.

Total Expected Handouts to AIG to date = $150 Billion. Wow.

Are we enabling incompetence? Hmm.

Image via Wikipedia

I’ve been quiet the past two weeks as the financial crisis descended upon the world. Thinking about all the money that would be handed over to people who had over-compensated themselves while mismanaging their corporations.

Silence was advisable because I was annoyed at the apparent necessity of $700 billion bailout. I wondered where they pulled that number from, and why it hadn’t been justified. I didn’t want to see why taxpayers had to pay for the lack of regulatory oversight in the housing, mortgage, insurance, commercial and investment banking industries. Having previously worked in several companies in these fields, I’ve often thought of the players as the hairy armpit crew … sans deodorant, ethics, and class.

More money is why AIG asked for and got an additional $38 Billion. They will be back for more. The government will give it to them because it has given too much money not to ante up more and let them go under. How’s that for security?

I’m over my anger. I’ve moved on to finding the situation interesting. I’m fascinated by the fact that nobody knows anything. The financial pundits have few clues of what will happen next. This is uncharted territory, which makes it anybody’s game. What do you think? Your guess is as valid as anyone. What do you see for the future?

How much farther will the US stock market fall? How many markets worldwide will we take down with us? It gives the concept of a global economy a whole new meaning. When will credit become available for consumer purchases? What happens to foreclosures, especially those resulting from decreased market value? Is it reasonable to expect a person to pay a mortgage obligation that is more than the value of the property?

How many jobs will be lost in the next 2-3 years as a result of this financial crisis? Where’s the upside … the opportunities that grow out of adversary?

What’s a woman to do?

Don’t panic. This is about preserving your capital. Cash looks better every day. Look for online banks that pay the highest interest rates. Suze Orman suggested moving money into T-Bills and T-Bonds as safe places to stash funds. We have few options but to wait and see.