I'm not an economist, so can someone explain "bailout is best of bad situation"..

[HardWorkingDem]

I keep hearing many pundits, talking heads and guests saying that we don't want to see what will happen if this "bailout" does not go on. That what will come after will be much worse.

Could someone offer up scenarios that are likely to happen?

[lapfog_1]

1. If we do nothing?

The most likely outcome is a very deep recession or even a Depression.

See this story:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4093410

[jobycom]

2. I can't, but here's an article by a rather good economist.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x387644

[jody]

3. "If you put all the economist who ever lived head to toe, you couldn't reach a conclusion" n/t

[depakid]

4. You could reach a conclusion that a credit freeze up is a major problem

that no one on any level wants to see.

[1]

5. do you like getting a paycheck? if that stopped would you be happy?

these are the questions you need to ask yourself...

[On the Road]

6. The Risk is Not a Single Failure

But a series of bank failures that dry up credit and confidence and result either in a sharp correction. If the economy cannot recover, it becomes a depression.

It's happened a number of times before in this country. Similar though not identical things happened in 1819, 1837, 1857, 1873, 1893, and 1907, plus two times in the great depression:

http://en.wikipedia.org/wiki/Bank_run

[asteroid2003QQ47]

7. A bit of humor, albeit black, to lighten the mood--

"The last severe depression and banking crisis could not have been achieved
by normal civil servants and politicians, it required economists involvement."

http://www.ahajokes.com/econ004.html