Like Candy At A Parade

Last night's interview of Ken Lewis, BOA President by 60 Minutes was more confirmation that this whole "crisis" has been contrived and massaged to a pre-determined end.

When asked about the $125 billion just given to the largest 9 banks by the Treasury, Lewis stated that the purpose was to encourage them to lend money, thus, alleviating the credit crisis.

However, James McCoy, a local mortgage officer over at Regions Bank, tells me that he isn't having any problems with this imaginary credit "crisis." He said he is still able to make mortage loans to individuals with terrible credit!

I asked specifically about the underwriting standards, and he said that they were as loose as ever.

I guess nobody told Regions that there was a crisis going on!

Back to BOA, though..... Lewis said BOA received $25 billion of the $125B total, even thought they really didn't need it. He said Treasury Secretary Paulson, in a short and to-the-point meeting, informed each of them that they would be receiving the cash injection, no questions asked. (Personally, I always hate to be strong-armed into taking free money, as I am sure they were as well.)

He also noted in the interview that they were not required, but "encouraged" to lend the money. They could do whatever they choose with the money.....buy Treasuries, or could even choose to purchase smaller "troubled" banks.

How convenient! Look for the latter to happen "en masse."

The coup continues as the big dogs continue to be the beneficiaries of an unholy union between the feds and the bankers, where the fed continues to throw out taxpayer money like candy at a parade.

So what does this mean to your investment portfolio?

My only advice is to continue to stay away from paper (cash, bank accounts and bonds) as much as possible, and hold gold or silver in abundance.

These bailouts can only be accomplished by the continued printing of additional dollars, which dilutes the value of the existing pool of dollars held by you and I.

Picture a glass of iced tea, nice and strong, and someone pouring water into it. It won't be strong for long, nor will there be much demand for it.

So is the outlook for the dollar, so you'd better buy tangible assets as much as you can.