The Bailout Borg . . .

Events a moving so fast it is hard to keep up with everything. The financial markets are crashing. The Federal Reserve is now taking just about ANYTHING as collateral in return for handing out short term loans, a.k.a. cash. Similarly, The Bailout Plan now apparently is going to expand to make what is for all intents and purposes signature loans to big corporations. And, the rest of the world, which just so happens to be in worse shape than the U.S., is following along. The European Central Bank just cut interest rates like the Federal Reserve did a few days ago. Here's the ECB announcement . . . warning: dry material. Asian and other regions have done the same. Sooner or later all this "liquidity" will over heat the world economy.

"Hot Money" refers to ultra short term investing. Big money moves in and out quickly causing bubbles and crashes. The Bailout Plan, as expanded daily, is putting cash in the hands of the financial world, and so they will "invest" it. Relatively little of this money, yours and mine, will be used for small business, mom and pop business loans. The trillions of dollars will turn white hot as the financial big boys seek to make the most of it. Short of true fascism, the U.S. Government will have little chance of controlling these trillions of dollars. The end result will be a huge swing back to bubble investing and crippling inflation as all that cash competes for fewer goods produced by a weakened world economy.

For us U.S. citizen folk let there be no doubt, we are "all in" to use a poker phrase. The metaphor is perfect. Every bit of wealth in this country, down to the last penny, is on the line . . . and the U.S. Government is playing our hand and is out of hand.