The negative reaction of the market to the bailout

“In theory, there is no difference between theory and practice, but in practice there is a great deal of difference.”

This is in my mind the basic lesson we learned this week from the negative reactions of the markets to the bailout.  

Given this, do you think we should revisit the bailout and maybe give the money directly to people who are struggling with their mortgages (maybe buying 1/2 of their mortgages and homes) instead of using the money to buy the financial instruments that represent these mortgages?
Sadly yours

Dan