Leaving aside the politics for a minute, consider whether the bailout makes financial sense:
1) Taxpayers need to fork over $700 billion dollars to people whose idea of prudential banking was to underwrite liar loans.
2) The price of the bad loans will be set by the bankers.
3) Taxpayers don't get any collateral in the form of stocks in the financial companies either, so they won't share in the profit.
4) You can not insist on changes in the way these banks do business.
5) How big is $700 billion dollars? It's twice the cost of the Iraq war. Using $700 billion, you can provide provide universal health care for six years. It's enough to pay the cost of universal preschool (one of the best educational investments this country can make) for 25 years.
No half-awake investor would ever go for such a deal. Why should my government enter into such a deal on my behalf?
p.s. I started this as a comment, but decided that it could stand on its own.