What could happen if bailout doesn't happen

There are many people who are concerned about the solvency of the US economy. I would like to ask if anyone remembers their basic economics class and what happens when the money supply increases. The answer is the value of the dollar goes down. 

It might hurt to say this but some business entities need to take the hit and eat that exscrament sandwich they created. People need to know that bad loans and good loans are being meshed together and the idea is that the risk is spreading out. The whole system was based on perception and what needs to happen is business needs to get innovative. Do what you do best... Find out how to better evaluate your assets and skim off the better loans bundled together and kick the others into the junk group. No goverment money needed.