After thinking about for some time I am of the opinion that doing this bail out at this time is pure political theatre designed to enhance the chances that entrenched Republicans in the House and Senate get re-elected on Nov 4th. It is brilliant strategy and it requires the Bush Administration to take some serious lumps but I bet it will work.
While I think Wall Street is in trouble, the only reason the Bush Admin is doing this now is so that Republicans can stand up to Bush, tell him "no" (or just change the amount of the bailout), and go back to their constituents and tell them that they stood up to the Bush Administration.
Yes, Bush is falling on the sword, but he's a loyal Republican who just took one for the Gipper.
Watch, over the next few weeks, the mantra of any Republican in a tough election fight will be: "I stood up to the Bush Administration! I am not one of them!"
They will practically parade through the main street of their home town with this slogan emblazoned on a sandwich board.