Ian Welsh has a must read essay.

What he suggests that Obama could have done without having to consult Congress at all:

• Start negotiations with a maximalist position, as opposed the current mode of giving the store away before anyone sits down.
• Ending the Don’t Ask, Don’t Tell discharges
• Not made the HAMP a fraud perpetrated against desperate home owners.
• Halting the Kangaroo courts at Gitmo.
• Not starting the cat food commission after Congress voted it down.

Going forward, he suggests that Obama use the authority granted him under the Federal Reserve act, which allows him to remove governors for cause and recess appoint their replacements, and take the the distressed debt that the FED holds, and sell it.

This would force the banks to mark their own assets to the now established market value, which makes them insolvent, and which would mean that FDIC and related agencies could nationalize them.

I like this last one, but it ain’t never gonna happen.

Go read the article though, it’s very good.