Keep them buckets movin', Ben...

So yesterday the Fed pumped another $41 BILLION dollars into the bailout. $70 billion from the Fed before, $100+ billion by the banks themselves, and another $41 billion -- this is starting to make the S&L bailout look like chicken feed. At least Congress hasn't put any tax money into it yet.

BUT -- I predict that they will. The banks are taking heavy hits on their earnings (and bankers pay lots of money to political campaigns), the dollar is sinking, foreclosures are still increasing, and despite the seeming good news with respect to economic growth, the price of fuel and all other commodities is also going up. It has only been optimism (and denial of reality) that has kept things going this far.

Henry H. Harrison (editor of REV magazine) has predicted that the downturn in housing prices will continue for years. I think he may be right. We are overbuilt and overpriced and overborrowed.