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OK, here's my question:

In this article we are told:

"would allow the government to buy bad mortgages and other sour assets held by investors". And it will supposedly cost $700 billion.

In the original draft text of the bill last Saturday we were told:

"The Secretary’s authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time."

So, if Paulson is able to go after everything now, including mortgage, credit card, auto loan, and student loan debt, then why isn't the price tag higher?

I'll answer my own question: because it's a scam, and won't fix anything - and if they're not really, really careful in giving proper "valuation" to what they buy then they could actually make things much, much worse if they pay too little.