(9-19-08) The price tag for bailing out the US financial system may exceed $1.3 trillion dollars.

The purchase price for the mortgage lenders, Bear Stearns and AIG is over $300 billion. Now the assumption of the bad loans held by the banks may cost an additional trillion dollars.

http://www.politico.com/news/stories/0908/13602.html

If the US Treasury created its own money, this might be bearable. But last I heard the system of money creation has not changed. I'm not an economist but it seems that the Fed is making a killing on our banking woes.

The Fed is creating this "money" out of thin air and using it to buy US Treasury Notes and Bonds. The Treasury (i.e. US taxpayer) are on the hook for these securities plus interest.

So while it looks like the Fed is riding to our rescue, in fact it is doing a very brisk business. And the US is falling so far into "debt" that political independence is a thing of the past.

The central bankers appear to be trying to fend off a Depression.