...and that government of the people, by the people, for the people shall not perish from the earth.

                    ~ Abraham Lincoln   The Gettysburg Address

When did we become a government concerned more with saving failing banks?

Among new congressional proposals is a plan — already on its way through Congress — that would increase the Federal Deposit Insurance Corporation's borrowing authority from $30 billion to $100 billion in order to grant a two year reprieve from higher deposit insurance premiums while the industry is struggling.

Why should failed banks get a reprieve from insurance that protects us from their mischievous ways?  Over leverage, greed, downright stupidity.

Many of you are having trouble with your house payments, utilities, tuition (if you have a child in college or a private school), credit cards and/or car payments.  Too many of us have had our secured credit lines cut by the same lending institutions who were begging us two years ago to take them out and use them.

This past week I received a call from a past client who has seen his minimum payment on his credit card triple.  How is that helping the credit situation?

The answer is it doesn't.  But it helps that financial institution retain the image of solvency.

Headlines: Durable Goods orders are up 1.9% vs. an expected 0.5%

Missing Item: The prior report was revised DOWN to -2.1% from a -0.8%, a miss of 263%. Any guess what percentage the current report will be revised down the next time?

Headlines: New home sales edged up 0.3% in April.

Missing Item: Mortgage delinquencies hit a record 12% for homeowners.

The CEO of Exxon Mobil (XOM) said the recent jump in the price of oil does not signal an economic recovery. (WSJ)

Why do I remain optimistic? Mortgage rates should remain low with little significant upward pressure.