I agree, Zen, that a large number of people have no knowledge of basic economics.

I wanted to put the size of this bail-out in perspective for myself--- how much is $700,000,000,000? The answer is that it is equal to more than 25% of the total US government revenues for 2007!
So, our congress is being asked (and seems willing!) to give the Secretary of the Treasury authority to spend the equivalent of 25% of all tax money raised last year to buy up "at any time, upon terms and conditions and at prices determined by the Secretary, sell, or enter into securities loans, repurchase transactions or other financial transactions in regard to, any mortgage-related asset purchased under this Act."

We are going to buying bad debt at an extraordinary volume!

Further, the bill specifically provides for no review:

"Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency."

I am deeply troubled.