How does the government borrowing another trillion dollars from me and you and placing it into circulation, further devaluating the dollar "help" anyone except the large firms that are being bailed out by the middle and lower to middle upper class tax payers who have to pay interest on the loan? The mortgage scandle is just part of the blame in my opinion. The real problem is the devaluation of the dollar by deficit spending, but without "significant" inflation, that should have been taking place in light of this event. That money is flowed into the economy and eventually all gets placed into investment banks, and put into companies which are then overvalued. The only cure is inflation, or getting money out of the system, which took place this week. Unfortunately, what the bailout did was just make things worse since that trillion dollars went back into those companies by way of investment dollars in the last 2 days. The only other way to correct the fundamentals would be to cut deficit spending by raising taxes across the board while cutting spending across the board, good luck with that, especially while trying to maintain some degree of consumer confidence. Then again, maybe "Regonomics" was all about lowering interest rates enough to make it seem more advantageous for us to put money into stocks rather than into the bank, since someone realized that our companies profits were declining due to globalization and competition. This eventually put risk on the investor and took it away from the banking industry. Any comments???
