While I think it's probably not going to happen, it's good to remember that you cannot get blood from a turnip--the debtors are broke.
+ 1 Where are Mittens ads on the GM govt takeover? now eminent domain to keep people in their houses. Are you serious, the govt can just break the law at will? How is the free market supposed to function when private investors have their deals broken illegally, by the govt! If you keep changing the rules mid game, no one is going to play. Every period of economic expansion ends in contraction, that's how it works. People who don't see it coming or plan ahead or save, and depend on credit are going to suffer some changes to their lifestyle. Deal with it.
I was against the bailout from the beginning bud. Laissez-faire let the chips fall where they may, is the type of economy that I feel has the most productive potential. Also, it is the only economic environment that fits in a free society.. which the US is not.