The legislation has been passed, but the bailout hasn't even started yet. Not one purchase has been made under it yet.
Not only that, if you think a credit crisis that has been winding into a ball for about 8 years now is going to unraveled overnight, that's ignorant.
Not only that, Paulson and other economists over and over have said the purpose of the "rescue plan" was simply to stabilize the economy within certain parameters, while within the parameters the market will be allowed to ruthlessly do its thing to prune out dead wood. Paulson has said over and over again that many more banks will fail and they will be "allowed" to fail as part of the normal business cycle.
Chemotherapy doesn't work overnight either.
Its a very expensive flop! You’re with Pelosi, Reid, and Franks! Go take your chemo!
Actually you're wrong. Commercial lending and inter bank lending is now the problem. Even though the govt. has assured all the banks that it will resolve the mortgage backed problem the banks are not lending unless the business is very strong and they are not lending to each other because they are building their capital reserves.
It really isn't hard to see that this would happen regardless of how much money the govt. would throw at the problem. Banks are getting out of the secondary mortgage market and soon they will be pulling back on credit cards and student loans. As the bubble deflates individuals and businesses with great credit will not have a problem getting loans, but those that have anything questionable in their credit won't.