As I have said before, America (and much of the world) is not facing a liquidity problem, it is facing a solvency problem.
The bailout is designed to add liquidity.
Unfortunately if there is simply not enough cash to support the amount of debt, if there are $99 dollars of debt in the American economy for every $1 of actual capital, $700B into the banks does not really do anything.
America is bankrupt and has to find a way to become 'un-bankrupt'.
Claeren.
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