Bank bailout fatigue

Tired of bank bailouts? The House has a 1,279 page financial reform bill which includes a clause allocating $4 trillion more for emergency funding in case banks collapse.

Treasury Secretary Tim Geithner also raised an additional $400 billion to backstop Freddie Mac and Fannie Mae, without Congressional appproval, conveniently implemented on Christmas Eve.

And with the federal budget deficit running out of control, and no investors willing to fund those deficits (except the Fed itself), they are now coming up with a new instrument in addition to overnight bank reserves, dubbed benignly as "term deposit facility." In essence, they are creating Federal Reserve CD's for member banks.

Many rightfully believe creating money out of thin air is inflationary, due to the printing of more USDollars. Another more dire scenario is hyperinflation, due to the more expansive creation of electronic currency via a computer keystroke.

In other words, the US Treasury can only print so many USDollars, as there are not enough trees. But it can certainly create more virtual currency through the miracle of computer technology. Turbo Tax Timmy's forefinger is developing carpal tunnel syndrome from all the keystrokes. Either way, the paper currency in your wallet is being devalued--on a much bigger scale. Protect yourself accordingly.