White House already overhauling rescue plan

First we'll buy up distressed mortgages, and then...no, wait, maybe we should just inject some capital into the weaker banks. After all it's only $700 billion plus change. Still, some economists had originally suggested that injecting federal funds into the banking sector -- in effect partly nationalizing the financial system -- was the better way to go. From the New York Times:

Two weeks after persuading Congress to let it spend $700 billion to buy distressed mortgage-backed securities, the Bush administration has put that idea on the back burner in favor of a new approach, which would have the government inject capital directly into the nation’s banks — in effect, partially nationalizing the industry...