700 billion bail out?

Is it better for the govt to bail big business out or the American people? Getting the big boys off the hook will not help the average American, we will still be stuck with the bill. Apparently as it looks right now the lenders and banks that rolled when things were good will not last. Why then stick people with those debts? Why not hit the reset on on the economy. Credit records gone. Those with savings can keep them. By doing this people would be enticed to build good credit as would businesses. It may hurt for a few years due to jobs lost but in the end people would realize past mistakes and make this wilting economy stronger than ever.