What would a "Main Street" rescue package look like?

I'm pretty convinced now that it's a good thing that Congress didn't pass the big bailout bill yesterday. We know now that there's no way "Club for Growth" Republicans like our own Tim Walberg will permit spending money to benefit the middle class or re-regulating the financial system.

Here's a link to an article by Dean Baker at Talking Points Memo. What he says about the root of the problem being the dramatic loss of the home equity we have been using to get credit for our purchases makes sense to me. I agree with his proposed solutions: have the federal government buy direct equity stakes in the failing institutions to provide them with capital, and send money to state and local governments to use for infrastructure projects and other expenditures to stimulate the economy. This approach seems to me to be much more "Main Street"-friendly.