Dan Denning says the bailout bill that just passed Congress is a recipe for “massive inflation.” In 1931, during the Great Depression, it was a different story. Back then, treasury secretary Andrew Mellon told Herbert Hoover: “Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate. Purge the rottenness out of the system.”

Any celebrations over this government bailout (if it gets passed) will be short lived, says Russell McDougal at Investor’s Daily Edge. The $700 billion plan will merely reinforce the fraudulent status quo in US money markets. And that means it will merely postpone the inevitable day of reckoning. Russell says this is a “disastrous long-term strategy” that will eventually wipe out the US dollar and Treasury bonds.

Hank Paulson’s $700 billion bailout plan has polarized opinion.

But the Treasury Secretary has received glowing endorsements from two powerhouse investors: T. Boone Pickens and Warren Buffett.

Taipan Publishing editor Justice Litle says Buffett’s backing is particularly significant. It shows there are still a lot of very powerful people, not to mention sovereign wealth funds and foreign governments, willing to back Uncle Sam.

Justice says stocks may be heading “way up” in the short to medium term.

The biggest financial bailout in history hangs in the balance today as House Republicans and Democrats lock horns over the small print.

Keith Fitz-Gerald says the political posturing and wrangling over the plan distracts from the key financial issues. Can America afford a $700 billion rescue package?

Keith says investors need to understand three keys points. A bailout will cause national debt to climb, the US inflation rate to soar and the US dollar to tank. Bottom line: Investors need to go overseas for growth and profits in the foreseeable future.

Neither Hank Paulson’s plan nor any of the additions by Congress and lobbyists will resolve the credit crisis, says Shah Gilani in Money Morning. That’s because “the key culprits are the structured financial products on the balance sheets of banks, dead investment banks, insurance companies, hedge funds and all manner of other duped and unsuspecting investor entities worldwide, as well as the proliferation of the unregulated $62 trillion credit default swaps market.” Shah says 15 simple steps would end the credit crisis for good…