Don't expect quick results.

That was the message from President Bush and economists yesterday after the House's historic passage of a $700 billion Wall Street bailout package yesterday.

Credit markets, helped by a boost in confidence following congressional approval of the massive rescue plan, may loosen up next week, easing the credit crunches faced by state and local governments, as well as by for-profit businesses and nonprofit institutions alike.

But the U.S. Treasury, which will spearhead the rescue attempt, faces a daunting task of organizing itself and then sorting through a highly confusing mountain of sophisticated financial assets held by Wall Street banks, insurers and other firms.

"It will take a couple weeks" for markets to start unclogging themselves, if they unclog at all, said David Wyss, chief economist at Standard & Poors.

Treasury's main goal is to buy up bad subprime-mortgage assets, via newly established auctions, hopefully giving banks breathing room to start making loans again to other banks and businesses.

Treasury, led by Henry Paulson, also has the authority to inject capital, via warrants, directly into strugging financial firms, shoring up their bottom lines and providing liquidity for firms to start wheeling and dealing again without government support, said Nick Perna, chief economist at Perna Associates.

But William Cheney, chief economist at Boston's John Hancock Financial Services, said other problems confront the nation.

"It's not a panacea," he said of the bailout bill. "The (bailout package) isn't going to turn around the economy. The (new rescue plan) is meant to avoid disaster."

The key to the economy turning around, he said, is for housing prices to stop falling.

Rep. Barney Frank (D-Newton) said Congress will likely allow Paulson to proceed immediately on his own, as lawmakers organize their new oversight committees established by the law signed yesterday by Bush.

Originally published by By JAY FITZGERALD.

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