Let Wall Street fail

This is certainly the approach that I endorse:

There is another $350 billion left from the renamed Financial Stability Plan and those firms that can navigate their way out of these choppy waters (among them, perhaps, JP Morgan Chase, Morgan Stanley and Goldman Sachs) can carry on and those that cannot (perhaps, Citigroup and Bank of America/Merrill Lynch) shall suffer the harsh verdict of the market, with all of its attendant collateral damage.

I asked a friend of mine recently who is an economist for a London-based economics research firm what is wrong with just letting the banks go under and he replied that you can't have a viable economy without them. That's a good point, if it's accurate. But I increasingly get the sense that a lot of these banks are going to fail no matter how much money we give them. The hundreds of billions we have already shoveled in their direction appears not to have accomplished much, and the first rule of getting yourself out of a hole is to stop digging.

Not giving these banks hundreds of billions more in taxpayer dollars also brings with it the notable advantage of being what I would argue is the morally correct position.