Possible bailout proposal

It looks like we're gonna have a bailout whether we want it or not.

I'm opposed, but in the interest of offering my two cents, here's what I think should happen.

The biggest issue with the bailout comes down to valuation of the assets. The market hasn't been able to place a dollar figure on what they are worth and that keeps the market frozen. (Illiquid)

Instead of giving a blank check to Treasury (which means to the Executive Branch) , we should dole it out in increments of 100 billion. After the first 100 billion amount is used, then Congress should evaluate if and in what amount the next 100 billion should be doled out.

The benefit with this approach is two fold:

1) By allowing Treasury to begin purchasing assets, the market will quickly establish a value for the assets. This will help crystallize the market value for future purchases. It will also encourage private entities to begin purchasing the assets since the government would have set a floor value through its purchases.

2) By restricting the amount given out, we can keep control over the money and possibly conserve most of it.

I think this approach would work and would keep us off the hook for the entire 700 billion.

All we need do is help establish a value on the assets to get the market moving again. This is priming the pump rather than drowning it. Doing this would not require the whole enchilada requested by Paulson.