There has been a lot of discussion about the economy of late and it can be very confusing. I noticed a post showed up at the WP Carey School of Business Blog dealing with the subject. It gives some very clear details about where that money would be going. Bailout is a term that doesn't make much sense for what they are doing, they are in essence buying up some securities that nobody wants right now, and at a discount I might add. I am not saying that I agree with all the details or have done extensive research around the issue. But the money is not just being handed over, we (via the US Government) are buying securities now to allow for flexibility in other parts of our financial markets with the intention that at some point in the future they will go up in value. I will always bet on America and this is no exception.