I can understand the outrage. I sympathize with it, because as I have pointed out, it is bailing out some capital-suppliers who should not be bailed out and supporting managers and executives who should not be rewarded for their speculative errors.

But, in the interest of truth and in directing the outrage in a useful direction, the public should realize that if the banks go through FDIC procedures in order to make good on the insurance of bank deposits, this too will cost them (the public) dearly!

The FDIC insurance is equally an abominable bailout if it comes to that instead of a Paulson bailout.

The outrage should be directed against the financial structure itself, from the central bank on down. It should be dismantled. We should usher in a new era of monetary freedom. Anyone should be allowed to compete in the issuance of coin, notes, electronic money, or whatever else they may wish to issue that may or may not become money. There can never be inflation or deflation in such a free market system. Anyone who over-issues and inflates a prospective currency will quickly be shot down in the marketplace. Deflation is avoided because there will be so many suppliers who can issue prospective currency, electronic or other.

Inflation and deflation are phenomena strictly associated with MONOPOLY control over money. The single issuer (the central bank) has every incentive to inflate and usually does. But on occasion, they deflate too and create recessions and depressions.

Outrage is useless and wasted when knowledge is lacking about real causes and effects. Emotion won't solve our problems.