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1st Centennial Bank in California was closed today by the California Department of Financial Institutions, marking the third bank closing of 2009. And we're still only in January!

The big news this week was the drop today in DollarSavingsDirect's savings rate from 4% APY to 3.5% APY. DollarSavings represented the last 4% APY savings rate and its drop, along with several other banks brought the average rate on savings accounts from the BestCashCow rate table down below 3% APY.

TD Ameritrade is offering 25,000 United Mileage Plus miles for opening a brokerage account and funding it with $50,000.

We've been told to buy and hold stocks; that it is the path to a better future. But the common person does not stand a chance in the stock market when CEOs and their executive team are siphoning the profits. Recent news about ex-Merrill (and now ex Bank of America exec) CEO John Thain only reinforce the point.

HSBC if offering a free power cost monitor valued at $150 to open a Plus Checking Account. The monitor gives you real-time readings of your power usage at home to help you find ways to save energy and money.

Principal Bank is offering customers a $25 bonus to open a checking account and set up a regular payroll direct deposit or some other regularly scheduled deposit. The bonus is paid out when $200 is received.

Nouriel Roubini, the Dr. Doom of economists, who correctly predicted the credit crisis 18 months ago, is now saying that US banks are insolvent.

As markets continue to gyrate, corporate and muni bonds may offer steady and in some cases extraordinary returns. Depending on the risk you are willing to take some corporate bonds yield 18%+. Munis can offer 6.5% tax free.

South Korea's largest investor, the South Korea National Pension Service said it's time to sell US treasuries as it believes the stimulus plan being developed by Obama and the Congress will lead to higher inflation and higher treasury yields. It's strange that as we struggle with deflation there is now talk of inflation concerns on the horizon.

The $300 billion bailout has been great for banks. Many have taken the TARP money and set is aside for toughter times or for future acquisitions. Many banks admit the public money has been a windfall that they feel no pressure to spend in any particular way. Most are also saying that they have not changed their behaviour because of the money. And what was the point?

Ken Lewis saved Angelo Mozilo from doing a perp walk, and gave Merrill a sweetheart deal of century, but also took down the largest financial institution in the country and now has put the entire US economic in still further jeopardy.

Hank Paulson made a series of bad choices when he changed the focus of the $700 billion TARP. Here is what I think happened.