Bailing out the banks is only half the solution.

The banks run a business. That business is providing credit to the economy.

Ifthe economy is now failing due to rising prices for necessities anddebt saturation, then the banks' business model no longer functions.Countywide is a prime example.

The US consumer is the key. Once he stops swiping his plastic cards, the world financial system is finished.

Theborrowing of the US consumer is being squeezed from both sides. On onehand, consumers are worried about the declining value of their homesand on the other, the banking system, burned by bad loans, is becomingmuch more picky about whom they ask to sign on the dotted line.

Lackof regulation and easy liquidity has created a huge financial sectorwhich exponentially multiplied simple mortgage loans into virtualprofits approaching quadrillions of dollars.

We are in the rabbit hole, folks.

To paraphrase Grace Slick...

One loan makes your larger,
And the next one makes you small.
And the bank that gave the money,
Just doesn't care at all.
Go ask Alice, 'bout her margin call.