Henry Paulson told television viewers on Sunday that using $700 billion of taxpayers' money to bail out his former colleagues on Wall Street “sticks in my craw”. However, his irritation is as nothing when compared with what vast swaths of ordinary Americans are feeling.

As news of the rescue fund emerged at the end of last week, blogs and radio phone-ins were inundated with Americans voicing their exasperation and rage at the proposals.

Richard from Anchorage, Alaska, was typical of many when he wrote on CNNMoney.com: “NO NO NO. Not just no, but HELL NO.”

Anna from Denver wrote on the same site at the weekend: “This is robbery pure and simple.” Claudio from Plainville, Connecticut, added: “It's our money! Let these companies die.”

The bailout comes at a difficult time for Americans. About 450,000 people are losing their jobs every week and more than 6 per cent of the workforce is unemployed. They have also seen the value of their homes collapse - by as much as half in states such as Florida, California and Arizona.

As if to add insult to injury, the Average Joe has seen that the banks seeking to benefit from the bailout fund are the same companies that profited from the securitisation of sub-prime mortgages. It is those mortgages that have triggered a foreclosure crisis, forcing six million homeowners out of their properties.

If the $700 billion bailout is passed, every American taxpayer will have to foot a bill of $5,354 each. The cost to every American is about $2,324.

Chris Whalen, co-founder of the Wall Street consultancy Institutional Risk Analytics, said: “If this scheme helps banks sell off solvent assets, then it is entirely inappropriate.”

The proposal to allow foreign banks such as UBS, the Swiss financial institution, to sell their mortgage-backed debt into the fund has only added to the anger.

Mr Whalen added: “This is so unseemly. Why should the US taxpayer pick up the tab for an institution like UBS? If we include foreign banks, where will we draw the line? Deutsche Bank is the reponsibility of the German Government. There is so much rage out there, among the electorate. Wall Street is so insular, so indifferent to what the rest of America thinks.”

Dean from Madison, Wisconsin, fumed: “I'm tired of rewarding institutions and people for the bad decisions they have made. Sure, it will hurt taxpayers if/when some of these institutions fail, but perhaps we need to let that happen. We do not need more big government involved in our lives. Enough is enough.”

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive