Why is the bailout unpopular (polling) to avg Joe?
Paulson simply doesn't understand the effects and dangers of his own plan. Ben and Paulson have been in denial about the housing bubble for years, and suddenly in a few days the Treasurer offers a half baked plan that is both Unconstitutional (immunity from review of even the Supreme court) and essentially a financial dictatorship. That plan is then kneaded around but is essentially the same - arbitrary financial dictatorship.
This is a loss of confidence in financials and the Fed, quite simple.