Avoiding it doesn't mean buying into the bailout - it means using the best means available to defuse the situation. Nobody wants a recession or depression - but they are coming. Slow or painful - quick and hard hitting - that's the only difference.
Yes...but what are those means? It seems to me, if we can smooth this out, even a little bit, that can buy us some time to work things out. I'll take slow and painful any day...that's more like the '70s than the '30s. We eventually overcame the '70s.
I completely agree on your points about not being dependent on credit, at least on a personal level. However, macroeconomics, like it or not, is completely dependent on credit, and the only way that would change is if we went back to the barter system. 'Taint gonna happen...
Sure, there are some real problems with handling things this way, inflation, not the least of which, (shadows of the '70s once again). We will be in for some tough times either way. That said, it's still better than waiting in line at the soup kitchen. As Shamus said in another thread, "it not the dirty '30s yet".
j