OK, here's the harsh truth.

1. Money is Debt. The greater the debt, the more money banks have. They don't actually LEND you $400,000, they create $400,000 as a credit to your account, and then, figuring in your interest, they then can record an asset on the books up 9 TIMES your loan (because of interest and all that.)

2. Credit Card Debt is Money. Sure, you might hate it, but the fact that you owe and owe and pay interest is also a critical part of the money supply. If everyone paid off their bills and lived within their means, it would be CHAOS for the economy.

3. Banks and Investment Firms were kept separate by the Glass Segall Act. Republicans wanted the act repealed, and Democratic President Clinton did so. They are both to blame. John PHRASECENSOREDPOSTERSHOULDKNOWBETTER. is no stranger to financial debacles, being a core member of the Keating 5 from the Savings and Loan debacle of the 1980's. PHRASECENSOREDPOSTERSHOULDKNOWBETTER. was playing with matchbox cars when PHRASECENSOREDPOSTERSHOULDKNOWBETTER. was swindling people out of their life savings.

4. What we have now is NOT AT ALL PHRASECENSOREDPOSTERSHOULDKNOWBETTER. - it's PHRASECENSOREDPOSTERSHOULDKNOWBETTER. - in which the Government supplies private firms with public money to the ends of furthering government power without the need for public oversight.

5. The money spent on the bailouts so far could have provided every living American with free health care for life.

6. The worst is yet to come, because with 70 Trillion+ in unfunded obligations and tricks like the AIG bailout (which was 79.9%, not 80% of the ownership, thus keeping the transaction "off the books" for the US Govt), the simple fact is that the USA is bankrupt. In the same way a homeowner in forclosure might still be able to drive a car and go out to dinner, it's like Wile E. Coyote running off a cliff - the thud is inevitable. We're off the cliff for a few years now, this is the "looking down so gravity takes effect" moment.

My urban co-workers usually kid with me about preparedness and the like. Yesterday, we spoke - in earnest - about stockpiling of "easily bartered goods" and they were quite pleased to have the discussion.

Without this bailout, things would be much much worse. But it's not PHRASECENSOREDPOSTERSHOULDKNOWBETTER.. PHRASECENSOREDPOSTERSHOULDKNOWBETTER. is a cuss word in America, it's a way of life for a huge portion of the world. I have plenty of happy, prosperous friends in places like Finland, Spain, Germany and France, all dreaded "PHRASECENSOREDPOSTERSHOULDKNOWBETTER." nations, and yet, for some reason, when I see them, they seem quite happy. They don't have health bills, they don't have to fear for their jobs (as much as we do). They pay insane taxes - 75% in Finland, and high gas prices (8.00 a gallon in the UK). In Finland, College is free.

As a US Citizen, you get it into your head that "free markets" are the only way, and the Capitalism is the only real system worth following. We have nothing - nothing at all - like Capitalism here. If we did, two things would be true. First, this bailout would never have happened, but secondly, you would never have had anything like bankruptcy protections laws and you'd have debtors prisons. Also in a pure capitolist society, you'd not have a fire department or police department, public water supply, sewers, or anything like a Department of Health. baby formula killing kids? Buyer beware! Cars exploding due to defective gas lines? Buyer Beware!

My point here is that this shock to our economic system - this fake free market - is most likely the first of many to come, and the Financial Alchemy of the Wall Street Robber Barons is hardly all over.