I agree that bankruptcy is not the answer. What I question is the $700 billion amount and the time frame in which the money will be used.

There is a lack of confidence that must be fixed. It seems like a smaller amount of money could be used to fix the confidence problem and get the "wheels of credit" turning again. There may also be a need to purchase some distressed securities. With confidence restored, it seems like financial institutions could step back into the picture to buy low and sell high.