Paulson, Bernanke Stand Their Ground

"I don't think we should panic into putting this money into places that will do us no good," says Salacuse. "I think we need a lot more discussion and a lot more thought. The markets have already taken a substantial hit because of the crisis, and haste is not going to turn things around."

Salacuse adds that lawmakers need to ignore the special interest groups -- whether automotive or financial -- to "start thinking about the national interest."

In fairness, the Treasury's capital injection program was intended to spur banks to lend more freely and build reserves against further losses. However, banks are not required to use the money for those purposes, and some have used it for other things, like buying competitors or paying dividends. That has touched a nerve with some lawmakers.

Treasury and the Federal Reserve are also exploring a bailout-funded loan facility to help companies that issue credit cards, make student loans and finance car purchases. Whatever plan emerges, it is unlikely to soften the blow of a dismal holiday season and weak economic news that will continue through 2009, according to the most optimistic economic predictions.

On the Hill Tuesday, Bernanke indicated that the groundwork has been laid to repair the financial crisis. Paulson called the capital-injection program "key to getting the economy going," but added that "it's going to take a lot of work and time."