Just a small interjection. I know it's not attractive (!) but I had a thought last night as I was lying awake worrying about the bank recapitalisation. There was an economist on the radio a few weeks ago talking about how the government should be investing in the economy, building roads and repairing schools etc. This creates jobs, resulting in tax revenue, feeding the government coffers, resulting in more funds available for investment and so on, creating what he called a virtuous circle.
Sometimes the simple things do work - is there any chance that Tweedledum and Tweedledumber were listening to this guy, but heard him incorrectly? They then put together a plan (ha!) to turn the country into a virtual circus.