True.
But the markets are digging through the proposals and finding tons of problems.
For example, the “bad bank” proposal. NO ONE has yet come up with a realistic model for answering the question “What shall we pay for the bad paper?” No one - Republican or Democrat.
There are politicians who keep pointing at the RTC model from the S&L days, but that’s a bogus comparison. In that case, the FDIC swooped in and just *took* the assets and notes. They didn’t pay anything. There was no negotiation, there was no discussion, there was no compensation. They just clumped up all the crap paper over in the RTC, cleared out the banks, sold the remaining assets off to other banks and then went on to peddle the crap out of the RTC, where any price was a gain on those assets because they had paid nothing for them.
They keep searching for magic solution while there isn't one, but they are still in denial over it. Just keep up with the appearance of working out a solution, churning out one proposal after another. Until they are all exhausted and have no other choice to acknowledge the reality.
In terms of collective psychology , we are still in strong denial phase. The very initial phase of psychological reaction to a crisis. It will take a while because great majority of them have never experienced really serious crisis. This thing is way off the chart for them.