The way the proposed bailout plan works is that the government would buy all of those bad mortgages held by banks and investors. Now the plan has already been expanded to allow the government to buy up all “troubled assets,” including student loans, car debt, and even credit card debt (not from consumers, of course, but from the banks that aren’t collecting what people owe them).
Think of that. The government would be assuming the banks’ risks and bad investments. In regular socialism, the government at least nationalizes productive industries. In this government takeover of capitalism, the government is nationalizing only bad assets.
Opposition to this plan is growing, especially among the general public, even though both presidential candidates essentially support it.