Don't laugh at the coming currency crisis.

The actual amount being asked for is 1.6T, not 700B. Look at the debt at the end of 07 and what it will be at the end of 08, and it's closer to 1.6T

The US is a debtor nation - it cannot pay 700B or 1.6T - it has to borrow more money from someplace else to finance this debacle.

What that means is simple - the problem remains the same. Unless the processes are reformed, which simply isn't going to happen in the next 6 weeks because of the elections.

So if the US can actually get this massive amount of money to be lent to them, there are two major problems. One is this influx of money into the system, which will weaken the dollar. The second is inflation.

Since the European, Japanese and Korean markets are getting/have been hammered today, I seriously doubt there will be many people gobbling up additional US loans...look at the T-Bill rates, that will give you a clue. I think those rates are skyrocketing because the predators are waiting for the mook...we'll give you the money...unless our markets crash first.

I am seriously pessimistic about any course of action. I don't think we're getting out of this one without major surgery and major pain.