Why complain? It's just money (dude!).
Money is like time. They are both derived concepts, derived from more basic qualities.
Some people, in fact many people, insist that the Universe was created within seven earth days. There was no earth to measure an earth day when the Universe started. Time is merely a sequence that if G~D slowed it down, we would never know.
Money is like the ticket to the Beatle's concert. It's worthless after the concert, except as a collector's item. Money is like a library card. It is like the disk quota that your system admin in your office allows you to have to store your emails and documents.
The world, or in this case our country, has to place limits on the amount of resources each person consume. Money gives the right to people to use up more of that quota. It gives the right to people to occupy more space on an airplane flight.
Some people, including our former beloved Fed Reserve chief Greenspan, bemoan the loss of gold as the backing for our currency the US$. And now we have to depend on the fiat of the US government to tell us how much our dollar is worth.
But gold backers do not realise that gold does NOT exactly align itself with the resource flexibility of the country and therefore would misalign the availability of resources. The most important resource of a country is human labour.
To manage the resources of the country, a currency needs to be expandable with expanding resources. A currency based on a limited resource like gold would cause money to decline in value when more money is issued by the government to adapt to expanding resources.
However, money is like the kanban ticket. Six months ago, you visited the information dept for help, it took them three weeks to solve your problem. Last week when you asked for help again, it took them only two hours. Why? It is because they have expanded the number of kanban tickets. They were able to expand the number of kanban tickets because they became more productive.
Therefore, money must be allowed to expand with the expanding availability of resources.
That $700 billion is dependent on you and I, to work harder and be more productive Americans, to be more productive human resources. In many countries like the Netherlands, Switzerland, Japan and Singapore, with little or no material resources, their prosperity demonstrates the value of human resources over African and middle-eastern countries which despite their rich oil and mineral resources, their citizens remain in poverty.
By extracting that $700 billion contingent on our hardwork, the various governments, Federal, states and local would need to ensure we have work through which to express that money we are so willing to donate to failing bankers.
In other words, we as a democracy are succumbing to serfdom prevalent to medieval Europe. We are merely serfs whose hard work is exploited to add value to the nobles and merchants. We the serfs help pay the gambling debts of nobles.
Nikolai Kondratief was a Russian economist that Stalin sent to Gulag. Kondratief charted out the stock markets of Europe and discovered a ~fifty year cycle. The troubles on wall street signify a new stage of industrial revolution, where old industries are dying and a new breed takes over.
That $700 billion should not be given to banks, because I am afraid it will merely be used to fund dying industries and fund its own excesses, many of whom are generous contributors to Bush, Pelosi, McCain and Obama. That $700 billion should be directed towards new and emergent industries. However, our (mis)understanding of free-market forces dissuades the Fed govt from directing that money toward worthy industries.
Those banks and venerated institutions should be allowed to die off. Even if the whole world goes down with it. Our country can no longer afford to have our jobs, our most valuable resource, exported overseas because our government refuses to encourage job growth in new industries. Our tax system dissuades retraining people in new fields.
Instead we are encouraged to make combustion engine cars. We have a health care system at the mercy of insurance companies which keep encouraging exporting of our jobs due to high cost of health care.
Therefore, your question is terribly relevant. Where is the money coming from? And the natural corollary to it is - where would it come from unless you provide jobs? And the jobs that you provide should make us partners rather than serfs. It should be used to fund low cost college education and vocation retraining. Education is the key to expanding our most valuable resource. We should not have to be paying a $100K debt at graduation. We should realise that cornerstones of our industries like steel and semiconductors are past their prime. The governments should spend money retraining us for jobs like bio and medical engineering, complex intelligent systems. Where we would have few competitors in the job market.
Dear Bush, Obama or McCain, that $700 billion would be well spent but do not waste it on the banks. Please.