The bailout passed by Congress and immediately signed into law on Friday afternoon may prove to have been a necessary move to protect our credit markets from totally seizing up, but so far the markets have not welcomed this as a solution as the Dow Jones Industrial Average has dropped more than 1,000 points from noon on Friday--approximately the time the bill was passed--to mid-morning Monday.
We cannot go back and see what the market would have done if the bill failed again, but this reminds us that while arguably necessary, the addition of $850 billion of new government debt is a bad thing for our economy.
