This was done in Nazi-era Germany - without very good results.
We’re not paying reparations to the French.
Comparisons to the Weimar Republic are every bit as silly as comparisons to 1929 here.
The comparison to be made here is 1873 and the railroad bubble.
And yes, even then, the government stepped in to re-capitalize banks.
The market is clearly telling us that Paulson’s plan won’t work. The market is clearly telling us that the Fed actions aren’t working. And the market got here because of the “free market” in credit derivatives.
So: what’s your plan on how to go forward?