Bailouts and Cold Turkey. What is the desired outcome.

One of the economics blogs I read had an interesting article.

What makes a bailout good?

To quote King:

"I'll say this until everyone agrees with me :) You aren't promised a certain price, you're only promised the market will be open so that you can find a price. The financial markets have worked. And to do that the Fed must lend freely, and it has. Meanwhile we will get either a new RTC from the Bush Administration, a MFI Trust from a possible McCain Administration, or something so far undefined by the Obama Administration. The question for Team Obama: Realist, Yankee, Rescuer or the end of the Fed? Do they know yet? This flowchart is unhelpful. Hint: Don't bother asking Raines and Johnson."

Also, probably more than you want to know, but interesting details on the problems: Clearing up the mess.