There seems to be a lot up to interpretation about the implications of this bailout bill. How will it actually affect the economy? The way I understand it, the money will cause speculators to want to invest in certain stocks, and will artificially raise the dow, but only artificially. And also nobody knows where the money will actually go to and is up to "agency discretion". However, there is so much back and forth that I am unsure as to how this bailout is supposed to bail us out.

$800 billion is a lot of money, but it still doesn't seem enough to cause hyperinflation as another thread has suggested.

What I want to know is exactly how this bailout bill is supposed to work. How will it affect the economy? Can anyone explain?

[edit on 2-10-2008 by italkyoulisten]

so... nobody knows what the deal is?

If $800 Billion is given to the banks, it will become $8 Trillion in the market, because of fractional reserve banking, they can lend $10 to every $1 they have.

$8 Trillion quickly dropped into our system will create hyperinflation.