I am now 100% convinced we are in the throes of a recession (http://www.econbrowser.com/) and the question now becomes just how deep it will go. Even if the bailout goes through, there are reasons to believe things are not going to turn around quickly. Every financial crisis has its own character. Here is a piece by an economist that I have a tremendous amount of respect for, Barry Eichengreen. He will correctly argue that in many ways this crisis is more difficult than the financial crisis of the Great Depression. That is very sobering.
http://www.voxeu.org/index.php?q=node/1718
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Here is an interesting summary of some past government interventions during crises:
http://www.forbes.com/reuters/feeds/reuters/2008/09/14/2008-09-14T222532Z_01_N14451766_RTRIDST_0_LEHMAN-RESCUES-CHRONOLOGY.html.
Interesting that Roosevelt may have been behind creation of investment banks and Fannie Mea ... both of which may be a big part of the current crisis.
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