Jerry Howard, chief executive officer of the National Association of Home Builders said the proposed bailout, stalled in debate in Washington, was necessary, but did not get to the root of the financial problem, CNNMoney reported Friday.

Upon returning from their election year fall recess, lawmakers will need to contemplate a bailout of up to $90 billion to kick start the housing market, Howard said. Falling housing prices and their drag on the credit system are widely thought to be the fundamental cause of the current downward spiral.

As the government steps in to help, recovering U.S. financial firms will need to deal with defaults and economic slowdowns in Asia and Europe.

On the positive side, however, most experts agree the U.S. is not headed for a repeat of the Great Depression, CNNMoney said.

The federal government did not insure bank deposits before 1933. Further, the year before the Great Depression, the gross domestic product dropped 13 percent, an economic jolt that has not occurred so far this time around.