Driving to work (late) this morning, I was listening to The Diane Rehm Show on NPR (plug: I'll be on Friday morning), and I heard a comment that almost caused me to strike a pothole. The topic of the day was the financial crisis and the under-construction bailout, and Simon Johnson, a senior fellow at the Peterson Institute for International Economics and former IMF economic counselor, commenting on the $700 billion package being thrown together on Capitol Hill, said, We're more in the realm of "chaos theory than economic theory."

Wow. And whoa. This rush to save Wall Street's backside is not only unseemly but perhaps perilous. Yesterday, Peter Orszag, the director of the Congressional Budget Office, testifed that the bailout could worsen the ongoing economic crisis. And even if the Democrats succeed in crafting a package that includes necessary provisions regarding accountability and transparency, CEO compensation, bankruptcy reform, and mortgage protection for homeowners, there are still plenty of questions about the overall approach of this bailout: the feds using taxpayer dollars to buy lousy assets from poorly-run companies to keep these poorly-run companies afloat. There are alternatives. The federal government could lend money to needy financial institutions instead of buying their crappy assets. Or it could buy better assets and pump money into the financial system that way. My Bloggingheads.tv sparring partner Jim Pinkerton advocates restructuring the entire financial sector to make sure none of its major players get too big to fail. Economist James Galbraith (a regular Mother Jones contributor) proposes pouring half a trillion dollars into the Federal Deposit Insurance Corporation (to preserve depositors' confidence in banks and prevent a run), putting $200 billion in reserve so the Treasury, if necessary, can buy preferred stock in banks to recapitalize these institutions, and waiting to see what happens. That is, let the folks who screwed up do what they can with their bad paper. Galbraith notes that serious economic problems will remain, but the threat of systemic collapse would be abated.

The point is that the Paulson path is not the only one. In fact, it may be the wrong one. Certainly, a few days--or a week or two--of debate and discussion before committing $700 billion would not be unwarranted. "We need more than three days to sort this out," Simon Johnson said. And he's right. The Democrats in Congress ought not be force to quick, decisive and misguided action by the we-must-act-today pronouncements from George W. Bush and others in his administration. On Thursday, John McCain said "time is short" and that a deal must be completed before the financial markets open on Monday. Barack Obama should reply: not if it's a bad deal.

Obama certainly wants to--and needs to--come across responsibly. (Who wants to be blamed for the crash of an entire sector?) But this train is probably moving too fast for the public. Slowing it down to get the response right could be a twofer: good policy and good politics.