October 1, 2008 What if the Senate does not pass the plan? Play video

(Josh Brogadir, NECN) - The financial rescue plan is expected to get enough votes to pass through the Senate tonight with the House likely voting on the new bill later this week.

But what if it doesn't pass what if there is no bailout?

Proponents and opponents of the treasury's 700 billion dollar rescue plan are lining up to advise senators and representatives - and to try to answer the question - what if there's no bailout?

Bob Glovsky: "Boy, that's anybody's guess. First, I would say. I think there will be a plan. I can't imagine that Congress won't pass a plan."

Oliver Hart: "well, I think they should be encouraged not to panic. I think the stock market has these wild gyrations and people think, my pension has disappeared. But the fact is that for a consumer, probably the most important thing is to have a sound economy in the long run."

Point is Harvard microeconomics professor Oliver Hart who says there should be no rush to act, that more canvassing of opinions is needed. He reasons no bailout does not necessarily mean no recovery for a troubling economic situation.

Oliver "A misconceived bailout plan could be worse, not least because of the possible implications for taxpayers. We don't know what the costs would be."

Counterpoint is Bob Glovsky, president of Mintz Levin Financial Advisors in Boston. He says if there is no rescue, a further tightening of credit will mean mortgages and car and student loans will be much harder

Bob: "my suspicion is that you'll see a lot more people out of work, more people will be laid off. So when Main Street says this is not our problem, this is Wall Street's problem, that's really not true."

Josh: Some have suggested major financial institutions could and even should go bankrupt, but the question is what impact would that have on them - and what kind of an effect would it have on consumers?

Oliver: "Unpleasant though it sounds, it's not necessarily a disaster because when banks go bankrupt, just as when other companies go bankrupt, they don't necessarily disappear into thin air. They can be bought by another bank."

Bob: "If there are less and less places where the consumer can get credit, where they can get a house mortgage or a car loan, that's a bad thing."

The decision now rests with Congress - in an election year - with votes riding heavily on decisions made in the public's perceived best interest. And if there's no rescue, both experts say there's sure to be some other plan - and other votes needed - down the road.