Although the $700 billion economic bailout was passed Friday within a week of debate, it may take longer before the economy feels its effects.
The plan received final approval after being passed by the House of Representatives, which rejected it four days earlier.
It passed the Senate Wednesday with revisions and "sweeteners" to appeal to skeptics.
Under the plan, the government will buy mortgage-related securities from struggling banks, pumping much-needed cash and confidence into the credit system.
But the economy won't recover immediately, said economist and UF professor Dave Denslow.
The country's recession will probably last between about nine months and a year, Denslow said. Without the bailout, it would probably have lasted at least two years.
Denslow said the 778-point drop in the stock market Monday following the House's denial was a wake-up call that helped to change many Congressmen's minds.
"It's becoming clearer that we are in a recession," he said.
The effects of that recession can be seen beyond Wall Street, especially in Florida, which has been in a recession for about a year, he said. The recent poor housing market has left many Florida banks unclear on mortgage values and unable to hand out loans.
Denslow said many banks have been hoarding money in fear of an economic collapse.
"Any bank that can get its hands on cash is just holding it in case things get worse," he said.
The new bailout plan will give commercial banks an advantage by offering government insurance for deposits up to $250,000 instead of $100,000, he said.
