There's no doubt that everything possible will be done to resolve the crisis as quickly as possible to rescue the world from the financial chaos and thus avoid a global recession. The US Congress has no other option but to accept the bailout plan in its current or amended form; without it, banks will be forced to call in companies' credit lines in order to survive, with a resultant downward spiral of unprecedented unemployment and poverty worldwide.

Although the fiscal bailout plan would help to ensure greater stability in the banking sector and financial markets, there are doubts about whether it will be sufficient to stop the wave of deteriorating financial statements and thereby give banks the courage to start lending money again. The main concern is whether the plan -- or New Deal, as it was called in the 1930s -- will result in a turnaround in consumer sentiment, especially in view of the fact that consumer spending is key to economic growth.

In order to ensure this New Deal lends sufficient impetus to the economy and largely prevents disinflation or deflation, the Fed and other central banks will have to relax their monetary policies considerably and reduce their bank rates aggressively. This will be necessary especially in the coming months, as inflation rates in First World economies in particular will decline sharply owing to lower oil and other commodity prices.

If a bailout plan isn't accepted, the Fed and other central banks will have no option but to lower their lending rates to banks and increase their current support of banks substantially. Although such monetary action would underpin the global financial system, banks would still be reluctant to pass the lower interest rates on to consumers and would rather improve their balance sheets.

Therefore, from an economic and investment perspective, there are 3 scenarios that should be considered. First, a completely New Deal ("New Deal Plus"), which entails the bailout and lower bank rates; second, a New Deal that entails only the bailout; and third, no bailout and only lower interest rates.