Brad DeLong says it's a better option than the Paulson model bailout. (And it did seem to work out pretty well for the Swedes when they got into a somewhat similar situation.)

I'm curious what Krugman thinks.

Late Update: This Krugman post from this morning suggests to me that he may think something like the Swedish model makes more sense but that the politics won't work and that given the severity of the crisis the not-as-terrible Dodd-Frank proposal is likely the way to go.