Dear Reader,

You must be sick of hearing about the bailouts by now.

We are.

The $700 billion TARP… the $786 billion Obama ‘stimulus’…  the $750 billion placed on hold, just in case the banks need it.

But there’s another little-known bailout we’d like to talk to you about today.

Some even consider it one of the secret reasons that the U.S. bailed out GM and Chrysler.

Pensions…

GM pays out around $7 billion a year to its retired employees. And it’s set to do that for the next ten years.

A few years ago, GM had assets of over $100 billion – more than enough to cover the benefits.

But after the rout in stocks in 2008 and early 2009, it’s unlikely that GM has the money to cover its pension obligations.

If GM goes bankrupt, its pensions would be taken over by the Pension Benefit Guarantee Corp (PBGC).

Most investors want to abandon everything and run for cover thanks to all the bad news, stock collapses and recession. Can it get any worse? Sandy Franks of the Taipan Publishing Group says, “no.” So what do you do with your money now?

Here she recommends to buy gold, invest in stocks with discrimination and keep your money liquid in treasuries.

This from Sandy:

The stock market did not react well to the government’s $787 billion economic stimulus plan.

On Feb. 23, 2009, the Dow tumbled to 7,114 – hitting an eleven-year low. The other major indices, including the S&P 500 and the Nasdaq, fell as well.

The latest economic numbers aren’t any better. The price of single-family homes plunged 18% and the Consumer Confidence Index, which was down slightly in January, plummeted more than 12 points in February to 25.

The combination of bad economic news and a tanking