I don't blame congress for rejecting the President's bill. The fact that they are willing to risk a global depression, rather than give Bush another blank check, shows how badly he has squandered his clout and credibility with them. I voted for Bush twice and he has been a terrible disappointment. Who in their right mind would pass another huge, sweeping, general, power-grabbing bill by this administration?
The only way to bail ourselves out of this situation may indeed be, what some in congress have called, "financial socialism". I think it would be closer to fascism, but that word has lost it's meaning. It is now only an ephithet to throw at political opponents.
Would America be better off to swallow this poison pill, than to let the financial sector become basically nationalized? Maybe so, but it is a moot point, because our current population neither knows nor cares about the true meaning or cost of freedom.
Even if we ride it out, and let the banks and brokerage firms fend for themselves, some more regulation is needed. Any libertarian who still thinks purely free markets regulate themselves is as out of touch with reality as the few Marxists left standing.