The Dow is likely to go to the 6,000-8,000 range even if they do bail everyone out, IMHO. These levels were absolutely expected by the long-time bears (with some expecting an even lower number).
Let’s imagine they let it go, then what??? The monetary system would shrink, housing prices would drop, stocks would drop and credit would become hard to get. Doesn’t sound so terrible to me. At least then, those with money would be able to step in and put a floor under everything (there is still a LOT of money out there). With the bailouts, the period of rising unemployment, falling stock and housing prices, social disorder, etc. will be prolonged…not avoided.
