Small loss reported in Bailout of Banks.

New York Times posted some promising news today about the Treasury Deparments report of a possible loss of 42 billion of of the 370 billion used in a bailout.

Whats even better is that they report this years deficit spending could lower from 1.5 trillion to 1.3 trillion with the return of this bailout money.

Im stil very skeptical if there will be a large enough return to prove that this bailout worked. In my opinon, more banks should have failed for their misuse of funds, and bailing them out just lets them continue the risk. But if they do turn a small profit, or almost break even, ill be amazed.

Is Breaking up Big Banks a good idea?

I found this pretty interesting on Richard A. Posners blog on theatlantic.com. In short, its about if its a good idea or not to break up some of the big banks to diffrent areas to possibly prevent another meltdown of our financial system. Personally, i dont think its a great idea. Everything is tied to together now, and seperating all of them would be extremely costly and somewhat risky. And a bank that focuses just on something such as savings accounts or something along those lines would generate very little income. I think if there was an actual well thought out solution it might work, but other than that, this seems like just an idea, nothing more.