The big banks are insolvent and  pumping more money into them will only prolong and worsen the crisis.

This can be true only to some degree. If you pump enough money into banks at some point they have to become solvent again. Their liabilities are not infinite.

Without gov't assistance? Marked to market and not fantasy?
At least 7 out of the ten largest banks in Germany would be insolvent.

Der Amerikaner ist die Orchidee unter den Menschen
Volker Pispers