Lawrence York

Look Who's Upside Down Now

The Reserve data tell it all. This bailout is for the banks to meet their reserve requirements, for the Fed to recapitalize, and for the FDIC. I agree with you that money supply tells it all and that we can expect further contraction of the US economy. Given the unfortunate circumstance we must pay the price to save the financial system but must also include the yet mentioned cost of bailing out GNMA. Since this aggregate number is a couple trillion dollars the question to debate is if while they're at it everyone shouldn't also be issued a VISA card by the government to pay their debt on time.