In Europe, though countries have already instituted or increased guarantees on bank deposits, investors and taxpayers alike may need tosee more bank recapitalization plans by national governments or a broader one by the European Union rather than a case-by-case, bailout approach as seen in Germany, Britain, Ireland and Belgium.
Some have already proposed a recapitalization plan for the US. Others say its premature but aren't ruling it out, especially if the bailout fund disappoints.
Still others are calling for simpler, more fundamental measures.
"We need to suspend mark-to-market accounting," says Robert McTeer, a former president of the Dallas Federal Reserve Bank, now at the National Center for Policy Analysis, referring to the accounting requirement that a security be valued at its current market price, not expectations of its eventual value. In the current environment, that generally means a depressed price, which is hurting balance sheets and trade.
The same legislation that authorizes the Treasury bailout fund gives securities regulators the authority to suspend the mark-to-market rule if it is in the interest of investors and taxpayers.
Given Washington's innovative—and increasingly aggressive—approach to the credit crunch, it's hard to rule that out. But the Treasury bailout fund is expected to help restore pricing and value to the mortgage debt market.
But since that's several weeks away, investors will need to show some patience, while lenders may have to apply some courage or faith in resuming lending.
Government leaders will have another chance to instill confidence later this week, when members of the Group of Seven nations gather in Washington for their regularly scheduled meeting.
The recovery process of the debt hangover will take time, which may be the one thing that is most needed but also most unwelcome.