Open Thread

For general discussion and debate. Possible talking point: will the just-passed bailout bill avert the looming financial meltdown?

I hate being so serious on a Saturday, but Friday's stock market reaction to the bailout passing the House did not evoke confidence. Those that are watching the credit markets know that there just is no major lending going on right now between financial institutions as no one seems to trust claims made by either borrowers or lenders.

On Friday, Gov. Schwarzenegger asked the Fed for $7 billion because California can't borrow the funds it needs to meet its obligations until state personal income and property taxes begin to flow in. This likely will start being a problem in other states as well as counties, cities, towns, and municipalities across the fruited plain.

With this in mind, is the bailout a bandaid on a severed artery, and things are going to get much worse before they get better? Is this all spiraling into a total, global financial meltdown leading to a massive depression? Is there anything that can be done? And, for the libertarians that have been saying that government should do nothing to assist these financial institutions, should all states, cities, towns, municipalities, and companies that rely on short-term financing to manage their accounts payable be also allowed to go bankrupt due to the malfeasance and stupidity of those responsible for this financial meltdown? If inaction is desirable to teach Wall Street a lesson, what is being taught to all the entities and individuals that have played by the rules and done absolutely nothing wrong but are going to suffer as a result of the actions of a few?