Most of the assets in the S.& L. crisis were real estate — which are always going to have value. And the government didn’t have to acquire them; it simply took them over and, over time, sold them. This time, the assets are complex derivatives of uncertain value that the big firms will actually be selling to the government. But how is the government going to assess these securities — and what price will it pay for them? In many cases, these securities aren’t being sold because they are still overvalued on a firms’ books.

Consumer and community groups, including U.S. PIRG, are insisting that the Congress demand that the package under consideration include a provision ignored in the summer's housing bailout law. The Congress must give bankruptcy judges the authority to adjust the terms of certain subprime mortgages to prevent foreclosures and allow consumers to remain in their homes. As for other details of any bailout package, the Congress should start by reviewing this outline from the economist Dean Baker. Also, the Center for Responsible Lending has proposed several things that Congress can do now, including granting authority to bankruptcy judges to prevent foreclosures. While the government must stop the bleeding, let's make sure that the proposal protects depositors, homeowners, taxpayers and small (average people like you and me) investors first, as a first principle.