Any politician and any employee of a politician, which Paulson is, cannot allow option A to happen. If only to save his own skin. You have to be seen to be doing _something_. Nothing was what the Fed tried during the Great Depression.
Will it only delay the inevitable? Probably. But perhaps the landing can be cushioned somehow. I have no idea how, but it is certainly worth trying.
This is my frustration. Unless someone can show a REALLY good reason how this can work then why is it worth trying?