In the 1930s, Franklin Delano Roosevelt saved American capitalism from
its own self-inflicted wounds by erecting a new financial
infrastructure—often over the vociferous opposition of the bankers and
investors whose poor judgment had helped precipitate the Great
Depression.

 How did the "socialist" do it?

During the New Deal, the government reacted to a disastrous systemic
failure by creating the sort of backstops, insurance, and
risk-spreading mechanisms the market had failed to develop on its own,
such as deposit insurance, federal securities registration, and
federally sponsored entities that would insure mortgages.

I know. Shocking right?  Good thing we elected a Republican President to fix this mess...oh wait...maybe not. Actually, I will give credit to President Bush for doing the right...err...left thing:

But as the nation once again confronts a systemic failure in housing
and housing-related credit, the Bush administration is going back to
the future, using New Deal-era agencies as the cornerstone of its
response.Although the Tennessee Valley Authority has yet to
pitch in, four 70-year-old agencies are helping to cushion the blow of
the housing bust.

Those agencies are Federal Home Loan Bank, Federal Housing Authority, Federal National Mortgage Association, and the FDIC. All of these of course use the strength of the government against the vulnerabilities of the market to provide stability. If someone knows why this is a bad thing, they may want to explain it to Mr. Bush.

 Alright, enough talk about the past. We need to look to the future.