Other Options Tossed Around

Here's a good description of 4 other alternatives to Paulson's plan. I think this one is the most important concesssion to push for if the Paulson plan goes forth:

The administration has said it is willing to negotiate key parts of its plan -- including a possible concession allowing the government to take equity stakes in financial firms in exchange for bailing them out

But - I also like the "government as lender" option, which would allow the Fed to loan money to the I-banks if they put up the mortgage securities as collateral. That way the banks have cash flow, and would have to pay back the loans ... or the Gov't eventually gets the securities if the bank cannot repay.

Again. What's important about the Hardball clip (below) is that these securities are not worthless - so once the market stabilizes the Gov't could make money (or at least not lose that much). Of course, it's all about risk ... what kind of risk should the Gov't accept? The Paulson plan? Or one of the others (like the "gov't as lender" plan).