This is good news for stock markets in short term. However in long term, the success of this plan depends on the details of implementation of this bailout.

Warren Buffet wants to invest 1% in this bailout provided the government buys the distressed mortgage back securities at market rates (approximately 15-20 cents over a dolar).
This is good and the taxpayers will win in the long run. However, in the short run, almost all banks local and national have face bankruptcy because of huge losses.
Jobs will be lost and it will hurt American leadership in global economy. However, if the government buys aove market rate (approximately over 50 cents on a dollar), banks will win and ameica will continue to lead in global economy and also jobs will be protected. However, taxpayer may loose the money in this bailout.

Is this bailout or buyout, only thenature of implementation can tell us. Untill then, keep tuned.
Thanks