Bailout Bill

"In times past, national debt typically was run up by borrowing money from private lenders and spent on goods and services. The tendency was to absorb loanable funds and bid up interest rates on the one hand, while spending led to inflationary price increases for goods and services. But the present giveaway is different. Instead of money being borrowed or spent, interest-yielding bonds are simply being printed and turned over to the banks and other financial institutions. The hope is that they will lend out more credit (which will become more debt on the part of their customers), lowering interest rates while the money is used to bid up asset prices ­ real estate, stocks and bonds. Little commodity price inflation is expected from this behavior."

Parsing Mr. Paulson’s Bailout Speech: The Unprecedented Giveaway of Financial Wealth
www.globalresearch.ca October 18, 2008

This printing of money in an attempt to fix a problem that was created by a socialistic government forcing the banks to make high risk loans has been very interesting to watch. Now that the government is actually buying voting shares worth of stock in the largest banks and we are moving toward a centralized government controlled socialist banking model, it will create even less diversity and competition in the market which should have an equally interesting affect on the market that I trade. The media's perception in thinking this will fix the problem and trying to persuade the public that these measures will stop the downturn has been overwhelming. I hope to capture some of that.