This was a sad day for America.  The United States Treasury today confirmed that it allowed the Federal Reserve to STEAL $29 billion of OUR money and give it to JP Morgan (NYSE:JPM) as a BRIBE to absorb Bear Stearns (NYSE:BSC).  That's $300 per American.  They announced, in broad daylight, that they are breaking the law and picking your pocket.  Did you get a $600 tax refund?  You're now paying half of it to JP Morgan.

I know this whole Bear Stearns thing is not the most straightforward thing for the average person to follow, especially if you haven't been paying attention to it along the way.  But here's what happened in very simple terms:

1. Bear Stearns made very stupid investments and went bankrupt
2. The Fed forced a Bear Stearns merger with JP Morgan
3. Bear Stearns investment losses still had to be taken by someone--their stupid investments didn't go away.
4. They figured out how to let JP Morgan keep the profits and stick YOU AND I with the  $29 BILLION in losses

I don't think people quite GET this.  JP Morgan keeps the profits, YOU keep the losses.  You like that deal?  I don't.  If I want JP Morgan to have $300 of my money I will go deposit it there, or slip it under the door in an envelope.  An UNELECTED group of people have dipped into the public purse and have taken $300 OUT OF YOUR POCKET.

A coworker recently sent me an article from John Mauldin explaining why this Bear Stearns bailout needed to happen.  BS.  *B.  S.*  This is BLATANTLY picking the pockets of Americans for the benefit of a few.  It is also violating the LAW.  ACCORDING TO THE CONSTITUTION, EVERY SINGLE SPENDING BILL MUST BE APPROPRIATED BY THE HOUSE OF REPRESENTATIVES.  BY ORDER OF THE CONSTITUTION.  If John Mauldin or anyone else doesn't like that he can go move to China where they can do whatever they want.  Get out now, and take your communist views with you.  Don't let the door hit you on the way out.  Last I checked we still had laws around here and an investment bank going under does NOT constitute legal grounds for breaking them. Especially, ESPECIALLY, laws that are explicitly outlined in the Constitution.

You know what would happen if Bear Stearns didn't get bailed out?  A lot of banks would fail.  Yes, the derivatives market would blow up.  Do you know who that would hurt?  THE BANKS THAT MADE THE STUPID INVESTMENTS IN THE FIRST PLACE.  Boo hoo, cry me a river.  Would it make you sad to see hedge fund managers have to downgrade their Bentleys or sell their yachts?  How about being sad that YOUR KIDS AND MINE ARE GOING TO HAVE TO PAY FOR THIS so that they can keep them??

If the people of this country don't stand up RIGHT NOW and scream LOUDLY, WE are going to eat TRILLIONS in derivative losses that rightfully belong to the banks.  You want a trillion dollar tax increase?  It's either you or the banks, you had better decide whom you care about more.  The way we respond to this particular situation will let them know how much they can get away with and therefore how each subsequent blowup is handled.  People need to go to JAIL for this, specifically the people who signed off on this crime:  George Bush and Hank Paulson.

Now, I WISH I could expect all the people out there to go picket in the streets about this, but I know that people just aren't going to care enough about maintaining a Republic to miss American Idol.  So here are a couple of things you can do from your chair:  first, call the Senate Banking Committee at (202)224-7391 and let them know you want your $300 back.  Then, go sign the petition to impeach Bush over his sign-off on giving away YOUR money without YOUR (and Congressional) approval.  If you care about this country and your standard of living it's the LEAST you can do.