The Dead Cat Bounce

This has to be my new favorite economic term. Today's bounce back in the Dow caused some to wonder if things ain't so bad after all. Alas, such people may not have heard of the dreaded Dead Cat Bounce. It seems even a dead cat will bounce off the pavement if dropped from a sufficiently high point.
Meanwhile, over at Marginal Revolution, libertarian economist Tyler Cowan gives his take on the possible consequences, positive and negative of the yesterday's bailout failure. Check out his best case and worst case scenarios. "Best case" is plently bad enough. Chilling.
K