Even in the short run there are more progressive ways to deal with this than just modifying Paulson's crap. FDIC expansion, Nationalizing the Federal Reserve and turning it into a Bank of the United States that grants the kind of credit we need. Bailing out failing institutions ether through nationalizing them, or at least getting equity states. A quarter per cent Tobin Tax on financial and currency trading transactions to pay for it. A lot of this is from lefties like Galbraith or Baker. But neoliberal Clintinoid humanitarian bomber Mark Kleiman supports the Tobin Tax. And Duncan Black (Atrios) a very smart liberal Democratic blogger who Max and I both respect has been pushing that it is better to swallow failing institutions whole than bail them out. I mean I think even on the short term issues there is a whole lot of space left of Nancy Pelosi that does no require flying into Never-Never land. And if you don't disagree with that last statement you may want to clarify, because it sure sounds like that is what you are disputing.