I haven't heard any politician explain exactly where this money is going to and who. They talk about the president getting this much, congress this much... but who and on what terms are they giving this to exactly. This is what makes me nervous.
OK, so here is my take on the situation:
Honestly I think if they leave it alone, it will get bad, but the market always corrects itself. Lots of banks will fail. Credit will become incredibly tight.
As far as the regular person:
Without the bailout credit cards will be either frozen or cancelled by the banks. They can't afford to have the money floating out there.
It will probably be incredibly hard to get a car loan or home loan. May not be able to at all for a period of time. Then the auto makers will not be able to sell them since most people have to get a loan.
Most of us work for large corporations. They run on credit lines. They use credit for payroll. If they don't have credit, layoffs will begin. Unemployment will rise.
With the stock markets tumbling and the current recession I'm not sure that the bailout will really help this. Honestly I think the companies that receive the bailout will use the money to pay for past debt and still we will be in a credit crunch.
Now, on the flip side.... More millionaires are made on Wall Street in times like this than any other time. If you invest now you are buying at a large discount from what these companies usually sell for. You have to be willing to ride out the storm though.
Steph