Financial Times Ahead

As I read in the paper about the bailout of yet another major financial institution, I start (progress) to get worried. The bailout of Citi is a signal, not that the other major bailouts were not. It makes me worried because I am not clear of the scope of this crisis. I do not know how deep the rabbit hole goes, and I do not know the consequences. But it is clear the government does. I am worried because I trust that the government would not bail out these institutions unless it was absolutely necessary.

Even Obama says it is going to get worse, and he is the ultimate political optimist. But I guess it is back to reality now that the election is over. It is my understanding, from the papers, that Obama and Bush are working on financial solutions together at this point, telling me that these bailouts and extreme government interventions are agreed upon by both parties. Scary.

The government keeps buying up the economy, and owning our futures. Is this the end of capitalism in America, or is that too dramatic? What do all of these extreme government interventions mean for the financial system? Will they help? Do you think the government will give back their stake once these institutions gain the appropriate liquidity, or is this for the long term?

I would like to know what you all think. I know my readers are a small group, but I respect your opinions. Where are we headed financially, and are these bailouts good or bad? Are we headed in the right direction financially?

I am worried...