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clipped from prudentbear.com Finally, since the problem is insolvency of our financial system caused by unrestrained credit creation, the solution is to collapse the over-inflated financial assets.  Bailouts merely legitimize the pseudo-wealth created by unrestrained credit expansion by socializing it. It charges all of us, as citizens, to pay for the phantom wealth that never should have been created in the first place. Up until now, the Fed has refused to disclose where the $2.3 trillion they have thus far spent has gone or for what purpose. Their arguments for non-disclosure are sophistry.  They know that if it were revealed, everyone would realize that they will never get this money back. They were merely bailing out financial players with worthless assets and speculative bets.  AIG just now disclosed that the first $100 billion of Fed money went to pay, among others, foreign banks more than $50 billion for credit default swaps (CDS).