My Solution

Thank God the bailout failed. Yes, I believe they need to come up with something, but buying all the bad mortgage backed securities from the banks only transfers the problem from one entity- the banks, to another- the government. All the $700 billion would do is guarantee that we have to continue poring money into an inexhaustible situation. The extremely tricky question is, where in this situation is the most help needed? I would love to say that we could help homeowners out, but we can't. The reason that won't work is the crumbling mortgage market is beginning to negatively effect all homeowners. If you decide to bail out individuals who can't pay their mortgages, where do you draw the line? Do you help all homeowners who have lost money on their initial investment? And more importantly, as responsible homeowners see the government help those who defaulted on their loans, what stops them from stopping their own mortgage payments so that they receive government aid too? Anyone with a mortgage has the potential to owe more money than the property is worth. Do we help them too?
So, we come back to Wall Street and our only choice is to let the crap securities stay where they are and open a line of credit to the banks. If it's credit they need to get business done (business which includes lending money to companies so that they can write our payroll checks and conduct their daily business), then We the People can lend. Lending implies a return. It is not a bailout if we make money available to borrow. Consider it a giant student loan. Most of these guys probably didn't have student loans so it would be mandatory for them to attend a class where the gravity of borrowing someone else's money is fully explained to them. Also explained in this class is how important repaying your loan is and that if you fail to pay the government back, your wages can and will be garnished (thank God they all make far more money than your average graduate paying back loans). We get them on a payment plan and we'll have the money returned with interest. We could even throw in some hidden fees, over-limit fees, cash advance fees, late payment fees, and your basic "We Gotcha Cornered- Umbrella Fee" for anything the agreement didn't previously cover, but that we thought up after the fact!
I love Karma!