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The Perfect Storm: Even with Bailout, Economy Is Hurting

The best aspect of the "bailout" is the transparency with which the average citizen can now view his government. It is the biggest in a long line of government giveaways to the megacorporations. Social risk and private gain. The worst aspect is facing the fact that no matter what ideal or motto our leaders throw at you, they are lies. The economy, in our nation and otherwise, exists for the benefit of the priviledged. This has always been true, what was unique in our little empire, was the ability of those in control to convince the working class average folks that the decisions they made and make are for the benefit of all. Of course, they used the same rationale with the "bailout". The economy of the ruling class is the economy that was in danger and that is why the 700 billion was directed right into their laps. The beauty of the free market is it's unwavering attempt to level the playing field for every player, and this is a blatant and clear attempt to keep it tilted in the direction that Paulson, Bush and all his buddies want. Really the same rationale as the Iraq war, send the common person in to die[or work], possibly lose his life, falsely under some lofty ideal, but in reality to bring more wealth and power to those who already have too much. The fact that our only hope for any change in direction, Obama, also supported it, shows how far along this road we are.

The Simple Explanation of Bailouts, Inflation, and Deflation

You hit the nail right on the head. it always leads back to the money supply, this is the basic nature and definiton of an economy that isn't based on a fixed value monetary system. everything else becomes a contributing factor. by the way, how would it be possible for the banks to control the money supply? they have some control over the velocity, but any new money always comes from the Fed. And historically, ridiculously, huge deficits create the same effect, gushing new money into the economy. and historically, ridiculously, pathetic trade deficits insure there will be a cheap supply of dollars to buy the securities. It was the perfect storm, and the creators of this storm want upwards of a trillion dollars to "fix" it. Sort of like hiring someone to maintain your house, you come home, it is torn down, all the materials have been sold at a profit, and now they present you with a "rough" estimate on what the repair will cost you[us]!