Here is what I would do: 1 Eliminate the M2M accounting rule so banks can realize a higher value for their loans and distressed assets. 2 Create a clearinghouse for CDS products with strict margin requirements. No derivatives contract should ever trade without being regulated by an exchange/clearinghouse. 3 Lower fed funds rate to 0 and then raise by 25 bps each month until it reaches 10%. 4 If any bank is in trouble I would offer a loanshark loan of 15% interest that is convertible to senior perferred stock at $1/share if not paid on time. This whole "give me $700 billion and crown me king" Paulson/Bernanke proposal is simply treason.