For a portion of the $700 Billion Paulson is requesting we could have available credit by using that money as equity for new banks.  If the banks could pay back the equity, they could be independent.  Either way they could provide Trillions of new credit.  If existing credit is being destroyed, this would not necessarily be inflationary.  Once the new banks started functioning, the existing banks that are viable would have to start making loans or they would massively lose market share.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."