Yes we are...And we're a long way from the bank and Lassie's gone away with Timmy and isn't coming back.
Shoulda put everything into...well, I don't know. You could say gold, but it depends on whether anybody has any currency of value to buy your gold with when you need to sell it.
The liabilities that were traded in the last year in unregulated financial instruments were roughly 70 Trillion dollars. To put that in perspective, the Gross World Product...all the money made in the entire world last year, was maybe $65 Trillion.
Some really big financial companies are bankrupt. Their creditors should lose money, like you and I would if we loaned money to a relative and they lost their job and turned to drugs or something. Wnat to know who the creditors are?
Saudi Arabia, Russia, China, Japan, to name just a few of the really big ones. We're talking about bailing these Corporations out to the tune of doubling or tripling the National debt. This is a failure of conservative republican ethics, credibility, capability, morality, and philosophy in a way that the world has never ever seen before without a world war or revolution.
Now, it looks like the proposal out of the people who were in charge while the dollar burned have offered to fix it by running up your credit card and making themselves untouchable. No oversight is to be allowed.
Those Morons! It was the absence of oversight, courtesy of John McCain and Phil Gramm, that got us in this incredible situation in the first place.
I wonder how much money John McCain stands to lose if these companies aren't bailed out? Oh wait...It's not his money, is it? It's Cindy's money. Let's see...Wasn't it Cindy's money that he was trying to protect way back when we first learned who John McCain was during the Keating Five scandal? McCain's first scandal only cost taxpayers $3.5 Billion...This one will cost us a thousand times that.
It's time for a change. McCain's deregulation has cost us our economy, our manufacturing base, our jobs, and now...the houses we live in.
Here's a long article with tons of information about where we are and how we got here. I suggest you read it.
Update: Krugman thinks the bailout as presented is a bad idea.