With so many details left unsolved, much more work will have to be done, again creating uncertainty for investors.

"It's going to be fine-tuned many times over," predicts Quincy Krosby, chief market strategist at The Hartford. "Given the enormity of the problem it's clear that certain parts will work and certain parts won't work, but it's a start."

The market is clamoring to know how the government will be able to help banks with their toxic assets while also protecting investors and taxpayers from getting blindsided if the fixes don't work.

"The devil's going to be in the details with this stuff," Twibell says. "We're still back to the old problem of how you price that, how you structure that."

3. Treasury Bubble Still Popping

While Treasurys rallied Tuesday on a further flight to safety, government debt prices are likely to fall as more and more supply comes on line while the government finances the bank rescue.

For Investors

The predicted trend reflects the difficulty the government will face getting a premium on bills it will be in a hurry to unload.

"The idea that you can just borrow and spend, borrow and spend, run ever-larger deficits and essentially print money with no consequences is economically naive," says Mike Larson, analyst for Weiss Research's Money & Markets newsletter. "Yet no one seems to be talking about the unintended consequences until now."'

Larson called the popping of the bond bubble months ago and sees the trend continuing as the government accumulates more and more debt.

Moreover, he said the pressure on Treasurys will cause interest rates to rise and thwart hopes of mortgage rates falling to 4.5 percent or even lower, a prediction made Mondayby Bill Gross, co-CEO of Pimco, the world's largest bond fund.

"The longer-term trend is clearly for lower prices and higher rates as a result of this supply issue," Larson says.