the fed is stuck here,if they bail out the banks and the currency deflates there could be a huge sale in bonds,foreigners removing there money,causing a world deflation in all currencies and a real 1929 type depression,if they dont bail out the banks we still fall and have a real 1929 type depression,so the only other alternative is for oil and commodity prices to fall and make life afffordable again,we will still have to eat the deflation of housing prices. Now there is only one way to lower oil prices and that would be to change the loopholes in the rules allowing you to speculate without taking delivery,there has to be a limit on how much you can carry long or short. The other adjustment would be that all real esate transactions must be made in federally regulated U S based institutions,basically all us goods transactions regulated by the U S laws,this subprime title they are using to explain this dilemna is a smoke screen,the amount of subprime loans don't represent enough of a percentage of the outstanding mortgages . The reason this market is tanking will probably never be revealed,the fact that it's not being leaked means the reasons are being guarded by a very select few.