Summary: What’s worse — corporate bailout or no bailout? Financial analysts and federal officials have warned that doing nothing to save AIG — or banks or the auto industry — would lead to catastrophe: an economic domino effect of bank losses, stock market chaos, and job cuts. Here’s what might happen if companies deemed “too big to fail” were allowed to do just that.
Summary: According to some economists, a Depression doesn’t have to be Great, with bread lines, rampant unemployment, and a wipeout in the stock market. The economy can sink into a milder depression — the kind spelled with a lowercase “d” — and it may be happening now.