On October the 3, 2008 Congress approved the biggest bailout in U.S history, albeit after paying off the dissenters in the House of Representatives to the tune of over 100 Billion dollars.  It would seem that the definition of a Bill being fundamentally flawed for House Members is "It doesn't include anything for ME'.  Congress spent most of the evening congratulating each other for a job well done, even as vote changers sought to justify their change of heart.  Now the question on everyone's mind is what can we expect now that the bill has passed?
 
Lets take at look at this from the perspective of the 90 -10 Rule.  Almost immediately upon signing the bill President Bush began warning that the effects of the bill would not be felt quickly or in his word "While these efforts will be effective, they will also take time to implement,"  With all due respect to Mr. Bush I beg to differ with his opinion in this matter.  Already Wachovia an institution supposedly drowning in bad mortgages suddenly is the subject of a bidding war between Wells Fargo and Citigroup.  I wonder could a 700 Billion dollar river of taxpayer money have anything to do with this?
 
As the government begins to recapitalize banks it will have an immediate effect on the top 10% of Americans as they are the banks.  Most people should know that a bank is not a building but a group of very wealthy investors.  So as bad debt is brought by the government we are not just recapitalizing banks but also restoring lost wealth for the top 10% of Americans.  Already the this top 10% of Americans have begun to jockey for position in the line for their share of the 700 Billion dollar bailout.  So, when President Bush says this plan will take time to implement what I hear is, as soon as the top 10% of Americans have (received their ransom money) been sufficiently compensated with taxpayer dollars, then and only then will they open the doors to credit for the bottom 90% of Americans. 
 
I want to say thank you for all those who gave positive feedback on my first post.  This whole thing started with me venting my frustrations in an email to some friends who copied their friends.  I cannot possibly email everyone who might be interested in this topic, so I decided to post my commentary here.  I will try to make my posts short and to the point and the next post will cover the real meaning of "Credit Freeze"