Quote Originally Posted by JakeMartinez
My local Wal*Mart.

Why do you think we're still on the downward spiral, then?

I think it's the fact that we haven't addressed the myriad of root causes to our crisis...we're just treating the symptoms for now. I think we might hit some serious inflation issues in the near future, what with adding 700 billion to the money supply, which (at the end of the day) will equal roughly 6.3 trillion dollars in new money based on the fractional reserve system.
Not quite, as the money appropriated has yet to be inserted into the system, as well as the nature of the bailout. Do you consider a person who has the best possible credit you have ever seen, heard, or thought about getting a loan as inflation (fractional reserve banking aside)?

Here is another way of thinking about it. Think of it as the American tax payer giving a loan to wall street so that main street does not turn into a ghost town. And even if wall street cannot liquidate/ recapitalize the entire amount, the tax payer will foot the bill. That part does suck big time, but it is better than the alternative.

I attached a chart of the U.S. money supply...see that huge spike once you get to where we are now? That's not a good thing.
Interesting graph, but it is undoubtedly wrong. That illustration lacks something vital, known as the M3, which is the focal point of your debate. Not only that, your chart has too dominant of a slope this early in the game. At best, it is a rough estimate.

Ill explain later, as it has been a long day:jointsmile:

I hate life right now, everything is fucking dry
GoldenBoy812 Reviewed by GoldenBoy812 on . Dow drops below 9,000, S&P nearing 900 I knew it was going to follow the bailout, but actually seeing it is truly something... As fears of recession run about, credit freezing, and job outlook seems uncertain, money is trailing out of unsecured investment and headed into guaranteed forms of investment. As this happens, stocks will continue to fall. It is very likely we will see the Dow in the 7,000's and maybe even somewhere around 6,000. The last time the Dow was @ that level, it was 1996... There are rumors that the Fed Rating: 5