Stilltitled

leaving the process of recovery entirely to the healing powers of the banking industry, as libertarians suggest, would be imprudent, even if the banks could manage it. Lacking much government intervention, Japan’s recovery took a decade. Sweden’s recovery, with state intervention, took hardly any time at all.

—Edmund Phelps

It’s almost inconceivable that there won’t be an enormous slowdown in the U.S. markets and with that, increased joblessness, lower employment and higher bankruptcy rates, both personal and corporate. Businesses are going to have to adapt.

—Michael Vogelzang, chief investment officer at Boston Advisors LLC

The cards are on the table and a recession is coming. Our focus is going to be on things like dividend yields, solid brand names, consumer staples, less cyclical exposure and those sorts of things. Broadly speaking, earnings estimates are coming down.

—Henry Herrmann, chief executive officer of Waddell & Reed, $70 billion AUM

More important than the bailout plan will be next year’s economy. I would rather sell on strength.

—Marc Faber

Manufacturing could be on the brink of a collapse. There are no orders, no jobs and there is really no incentive for businesses to invest. The credit crisis is compounding the problem.

—Lindsey Piegza, a market analyst at FTN Financial

It has to go, for the sake of the U.S. and for the sake of global finance. I am confident, but of course it is the decision of the U.S. Congress.

—Jean-Claude Trichet

[The rescue bill] is not going to switch on a light, so to speak. I see more layoffs coming, and I see more business failures. You have to start thinking about Treasuries as a core holding going forward for the next year or so.

—Francis Mustaro, who heads a group managing about $500 million at J&W Seligman & Co. in New York

People are focusing on the fact that when you move beyond this vote, you get back to the data fundamentals, and we’re staring at what could be a very steep recession

—Martin Mitchell, head government bond trader at the Baltimore unit of Stifel Nicolaus & Co

And let us recognize above all the 228 who voted no — the authors of this revolt of the nihilists. They showed the world how much they detest their own leaders and the collected expertise of the Treasury and Fed. They did the momentarily popular thing, and if the country slides into a deep recession, they will have the time and leisure to watch public opinion shift against them.

—David Brooks

This is unheard of, the money markets should be the engine driving the financial system but they have broken down. Any institution that hasn’t completed its 2008 funding needs by now is going to be in very serious trouble. More banks are going to need to be bailed out.

—Kornelius Purps, a fixed-income strategist in Munich for UniCredit

Counterparty fear in the banking sector is at a new extreme. Credit conditions are as tight as a drum. Unless this settles down, central banks would need to cut rates globally to bring funding costs down.

—Greg Gibbs, director of currency strategy at ABN Amro Holding Bank NV in Sydney

The fact that house prices quickened their slide before the worst point in credit markets hit this month does not bode well

—Derek Holt, an economist at Scotia Capital Inc. in Toronto.

US to face Recession, regardless