When a financial bubble bursts it is virtually impossible for government to resurrect it. Although it was government that created the environment for a bubble to exist it was people who responded to the environment and therefore created the bubble.

The financial psychology bubble that existed in the United States is the bubble that can not be resurrected by immediately recreating the environment that allowed it to develop. The Feds can create all the money they want to create but they can not alter the psychology of those who have been burnt or just managed to avoid being burnt. At this point in time the desire to borrow money exists mostly in those people and businesses that want to avoid bankruptcy. They are border line credit worthy if credit worthy at all.

However, the environment for a massive bubble is being created but not the bubble that the Feds want to recreate.

A massive financial bailout will create a massive precious metals bubble. There will be a bubble in precious metals and particularly precious metal stocks. This will be a bubble because a bubble never stops at a point that is reasonable. If it did it would not be a bubble.

A MASSIVE BAILOUT THAT HAS NO LIMITS WILL CREATE A MASSIVE PRECIOUS METALS BUBBLE THAT HAS NO LIMITS.