There are many economics and self proclaimed geniuses that think they have a miraculous way to make a bailout plan work. Whether its to give the interest in the bad debt to taxpayers, leave is (and our money) in the hands of wall street, or to turn our entire banking system and discretion up to the federal reserve. This is all totally irrelevant and pontificated over in vain if we don't recognize the fundamental problems. You can have a house made of gold, but it will surely sink if your foundation rests on quicksand.

Congress should enforce the rule of law. Property right and fraud are already protected by the rule of law, but not enforced. It was not a lack of regulation that caused deregulation to fail or the financial markets, it was the unwillingness of FERC in the case of CA's deregulation crisis, and congress in the "recent" case of Wall Street's failure to enforce fundamental rules of law. If we don't have a respect for the basic principles, there is no way anybody will have any respect for the regulations we try to enforce. At the end of the day, any law that is not a fundamental law, can be dodged with slick lawyers and tricky tactics. They will be dodged by those with the most power, the most money, the least respect for the rule of law, and the worst of ethics.

For example, is lending something to people that you don't have fraud? I think fundamentally, that is fraud. If I cannot give a loan of X dollars to someone when I dont have X dollars, why can the government? As such, fractional reserve banking is fraud. Printing money is fraud. Yet, no bailout plan, aside from Ron Paul's HR 2577, deals with the fundamental problems in our markets and economy. So the planners can try all they want, but when you have a system that is fundamentally built on fraud, it will surely fail.