linklings, you have got to be kidding me edition

With the apparent failure of the Senate to agree to a bailout of the nation’s “Big 3″ auto manufacturers, it appeared that Friday we were about to enter into an interesting new phase of the “what if the company is too big to fail?” story. But wait!  Not so fast!  Remember the $700 billion set aside to rescue the financial system?  Well, what if we took THAT money and gave it to the auto companies?  Just as a short term loan so they could fail next year?  And let’s not burden them with pesky requirements like building more energy-efficient cars, or shutting down unprofitable model lines.  Let’s just GIVE them the money, no questions asked, straight from the US Treasury bailout fund!  Who needs pesky Congressional oversight, anyway.

Ugh. If I was Honda or Toyota or BMW or any other foreign car company that has gone to extraordinary lengths to set up factories here in the US, I would be enraged.  One of my Fords was assembled in Canada from parts (mostly) manufactured in Mexico.  My Honda was built in Ohio.  Honda (I’ll use them as an example) makes a nice car that runs well.  When I was shopping for a car early this year, I visited a Dodge dealership, and their product was vastly inferior to the American-built Honda.

So once again we’re embarking on a ridiculous path that makes no sense. If we’re going to start nationalizing industries, can we at least require them to keep jobs in America, or limit CEO salaries, or build cars that can help reduce dependence on foreign oil?  I sure hope some of this insanity ends on January 20th, but I’m not so sure it will unless President Obama is willing to take on his own party.  I just have to keep wondering – how much more damage can this Congress and this President do before we’re thankfully free of the most disastrous year in American economic history?  And yes, I said “most”, simply because of the awful long-term damage to our debt and the horrible precedents that are being set.

Enough with the rant.  On to the links:

Stock Market Predictions From Bad News Bears:  The media does love bad news, but then again – where’s the good news?  Employment figures?  Debt numbers?  The market?  Consumer confidence?  Oh, wait!  Gas is cheap again!

American Households Lost $2.8 Trillion in Net Worth Last Quarter – Chart of The Day:  Eh, what’s a trillion these days?  A trillion is just the “new billion.”  If you look at the chart, though, it’s important to remember that we’ve had a steep run up in household net worth since ‘82.  The important question will be:  how much of that was a real increase in value, and how much “irrational exuberance?”

How to Take a Loss on an IRA:  This strategy is interesting, although not applicable to most people – but it does illustrate something that I need to work on a lot more, which is creative finance.  Trying to think of new ways to get around financial issues is a brain muscle I haven’t developed as well I should.

Asking for a Pay Raise – Ten Steps to a Salary Increase Next Year:   It may be a bit optimistic to think of salary increases next year unless you’re a foreclosure expert, but it never hurts to try, does it?

Frugal Tip: Buy Quality for the Long Term:  Can’t be said too often… cheap is not frugal.  Frugal is not cheap.  AT the same time, expensive does not mean quality.  Identifying quality items is best for your pocketbook AND your stress level.

More Bailouts… Are You Still Angry?:  See my rant above.  And I do want to ask: where was the Treasury Department when Bennigan’s went under?  Or Circuit City?  Lots of employees worked there, too.  Lots of people bought consumer goods at Circuit City (not sure why, to be honest).  Lots of people ate at Bennigan’s, too (in the 80s).  I have a dramatic proposal:  if a company cannot generate enough revenue to meet its expenses, it does not need a government bailout.  It needs to generate more revenues or cut expenses until it can’t go any further, and then it is what we used to call “a failed business.”  Oddly enough, that’s the system that’s been used for the last 200-odd years; strangely enough, the US is still here…

What’s With All These Stories About Retirees and Those About to Retire Losing 50% of Their Investments?:  If you’re about to retire and you lose 50% of your investments, you made a mistake in your portfolio, sure.  My grandfather was a fervent (to put it mildly) believer in the stock market.  It Could Not Fail In The Long Term.  Trouble was, he forgot that The Long Term isn’t as long once you’re in your 80s.  He didn’t live to see this collapse, and I’m glad he didn’t have to suffer through seeing his faith shaken; and fortunately we were able to convince my grandmother to get out of a LOT of stock positions after he passed on.  If it had all stayed there, she would have been in much worse financial shape now – as it is, she is free of much of the worry she otherwise might have had.

Are Artificial Christmas Trees a Frugal Alternative?:  I love my artificial tree.  I should get a picture of it up on the website.  It is both frugal and environmentally friendly – it was passed on from my grandparents to me, so it’s probably a 50 or 60 year old artificial tree.  Given how it looks – very good – I see no reason my son or daughter won’t be using it someday.  I enjoyed traipsing through the woods with Dad as a kid to cut down a pine tree, but that was in the South where you could go in the forest and cut down a tree without a permit (maybe?  or maybe we were tree-thieving?)

Dealing with the #1 Issue in Making More Money:  Yep.  I am guilty of this, mostly because of Netflix.  I do love watching an hour or two of movies in the evening most evenings, and I know it’s a waste of time.

Enough of these bailouts already – Smart Spending Blog – MSN Money: Thanks to MSN Money’s Smart Spending Blog for the mention!