[Mavdog]

well, since people are animals, and people "clip coupons, balance checkbooks, comparison shop", then yes there are animals who do just those very things.

I defend the theory that people act out of their individual emotions, their perception of the present and the future, how best to respond to those inputs and react accordingly.

there is a popular theory of decisionmaking that places fear as the primary thought behind how individuals respond to situations. that theory provides not only a better understanding of why the economy deteriorated as rapidly as it has but also provides an endorsement of the "animal spirits" principle.

as to the "bailout of folks", state the plan and I'll comment. I'd expect once it is outlined we'll see it isn't a "bailout" but rather more of a plan to help people work out of their situation. a "work out" is not a "bail out".

as for plans to calm the housing market, if there is a sense that there is a lower chance of further price deterioration the marketplace will be more positive about investing, lenders will feel more comfortable that the prices will satabilize and their risk of asset decline is reduced, and all of that will lessen the further downward momentum.

and the animal spirits will be much, much more calm and less combustible.