Triage requires full disclosure.

A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith

Martin makes similar points below.  The chief virtue of my recommendation is to create new credit for ongoing business and for credit worthy borrowers.  I don't know how much available credit is needed for the economy to work adequately.  But credit freeze has been cited by Bernanke as the reason we must come up with the $700 Billion.  I can see that it is a real problem.  I would rather see that amount of money spent on something real and obviously helpful than on unwinding 30 to 1 bets.

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