James Galbraith: Beyond The Bailout, What Must Be Next

Economist James K. Galbraith, a progressive critic of the Wall Street bailout plan now being considered in Congress, considers the choice lawmakers face today to be a choice "between the unpalatable and the disastrous." But the choices lawmakers make afterward will determine whether an unpalatable choice ends disastrously.

In this interview, Galbraith, author of "The Predator State: How Conservatives Abandoned the Free Market and Why Liberals Should Too," says that activists should now turn their attention to three urgent issues: help to homeowners, assistance to state and local governments, and stability for pension funds. Galbraith also lays out the scope of an overhaul of the financial system that must take place to end the abuses that have occurred under the Bush administration.