Is the USA in Desperate Financial Crisis Today?

Well, people who are much more intelligent than me, especially about things economic, are looking to the Fed's 30 billion dollar backing of JP Morgan's buyout ($23 million?) of Bear, Stern as a signal that things are about to get very much worse here. Evidently, people are not paying their credit card debt or their mortgages, and with major financial institutions going belly up--and with the Fed insuring JP Morgan's 23 million investment with 30 BILLION, folks say that there will be other following Bear Stearn's lead--there is a possibility that we are in for something worse, even, than recession....

One blogger I read sees a conspiracy that even brings in the recent Governor Spitzer scandal:

"But it's interesting timing - a month ago Spitzer wrote an article about how Bush and his buddies are partially responsible for the mortgage fiasco and how our government is bailing out crooks while hardworking Americans lose their jobs and their homes. Then just as a "coincidence" they just happened to "discover" information that made Spitzer resign. The same week that the Fed bailed out a bank who lost money because of the mortgage investments. But people who work at banks know that none of the cash withdrawals from Spitzer were large enough for anyone to fill out the SAR report."

(Here's a link to that Spitzer article: washingtonpost.com/wp-dyn/content/article/2008/02/13/AR2008021302783.html)

"So here is my theory " our government is keeping "tabs" on people the same way that Hoover had his incriminating files on people that he could us when he needed to destroy someone. They knew Spitzer had to go and already had the information they needed although going through someone"s financial records for political purposes is probably illegal."

"Now they"re bailing out BS [Bear Stearns] although the top people there probably already sold their stocks because they knew this was going to happen. But our major newspapers are still focusing on important things such as the life of a high priced escort--yesterday the NYT had an entire page in the main section all about women working as escorts instead of how the Fed is creating even more "moral hazard" by bailing out banks again."

And another blogger goes so far as to question the future of Capitalism (at least the variety fueled by credit):

"In 1989 Russia and its Communism went Belly Up. It looks as if 2008 is the year in which good old Capitalism is on its way to go Belly Up. It's all in what we have been taught since childhood in schools, Colleges and Universities. Privatization is our way of life, Greed has to rule our lives, Screw thy neighbors and friends. This is the Me, Me, Me, generation and to hell with everybody else."

"Let us realize that we are on this earth for a visit and let us take care of each other. We are dependent on each other. Let us get rid of Lobbyists and Lobbying. And let us get rid of corrupt politicians, and a system which favors only the haves."

Well, alrighty then! As I mentioned above, I cannot comment much. I tend to think that it is best to not panic in financial situations, but, at the same time, perhaps it would be smart to have a backup plan in place for retirement.... :o)