There is a huge difference between what is said is intended, what is intended, and what really happens.
Why are people so ignorant of the real threat to the economy. DEFLATION. Deflation, deflation, deflation. It's not f'ing rocket science.
If prices start dropping, then debt cost more to pay off than what was intended when it was borrowed. The governments of the world know that they need to decrease the value of their currencies. Part of it is lending or getting more into circulation that already exists. The other part is printing money and maintaining value of commodities and stock. Banks were about to collapse, that money was to devalue money and revalue banks.
Spending that money on a Spa Treatment or buying another bank may be distasteful, but it doesn't matter. The bail out did its job. Prevent the financial markets from going any further down. They haven't even gone into effect yet and may never go into effect, but they caused a change in confidence levels.
The problem isn't just the banks willingness to lend, they need to get through months of backlogged foreclosures. People don't want to borrow because their property is devalued and their incomes are down.
There are huge problems ahead, the $700B bail out did what it was intended to do. Make people (workers, investors) feel like the government was doing something and prevent deflation.
I would cite regulation, but I know you will simply ignore it.
