Something I don’t get about business and bailouts

I don’t really know what the right answer to the $700 Billion Dollar Bailout Question is (I have not read the bill, and I wonder if the bill really describes what would happen). But the whole situation does remind me of a related question: is it really the end of the world if the “credit markets freeze?” It is a disaster if the equity markets tank for a period of longer than a year or so (prevents people from retiring and so on)- but I am not sure if all of the consequences we are being told really follow. Continue reading