As I see it the bail-outs have prevented the capitulation that is needed before the economy can really rebound. Wall Street's bad moves were rewarded with major government bail-outs, so they are doing the same thing over again. That's what happens when you reward bad behavior. (When your new puppy chews your shoes do you say "good boy" and give him a treat? Only if you like going barefoot.) Companies and institutions that should have gone bankrupt were instead propped up on the taxpayer's dime. At this rate we'll all be barefoot soon.

Word I have (third hand -- RE broker > investment broker > me) is that within a couple months we'll see commercial real-estate take a major hit and then look for a follow-on residential crunch -- apparently bills are coming due. Everyone looked at their calendars and expected it to be over by now; it's not over.