It's The Stupid, Economy

Look, don't act like you didn't see it coming.

What!?!? You didn't think there was anything wrong with getting a credit card with an interest rate of 20 percent? You let the banks convince you that you could buy a five-bedroom crib in the suburbs with zero-percent down, but you only make $20,000 a year?

The Escalade -- the one you felt the Lord told you God's people deserved to have, somebody still has to pay for it, and The Man Upstairs doesn't do long-term loans. ...

Financial Industry in Turmoil

Wells Fargo, JPMorgan Chase, HSBC and other large banks have all reportedly been approached by regulators seeking someone to rescue Washington Mutual, which has been pounded by the slumping housing market and the subprime lending fallout.

Nick Ut, AP

Some are also speculating on which firm may be headed the way of Merrill Lynch or Lehman Brothers. Media reports have said that Morgan Stanley is pondering whether to remain independent and that it is in talks with Wachovia about a possible combination.

Mario Tama, Getty Images

A trader works on the floor of the New York Stock Exchange, Wednesday, after nervous investors yanked their money out of the stock market, sending the Dow down 450 points. The latest market plunge came after a late Tuesday announcement that the government would bail out ailing insurer AIG. "People are scared to death," one investment strategist said.

Richard Drew, AP

The AIG bailout marked the second time this month that the government put taxpayer money on the hook to rescue a private financial company. In exchange for a 2-year $85 billion loan from the Federal Reserve, the government will receive a 79.9 percent equity stake in the company.

Mark Lennihan, AP

Former Allstate chairman and CEO Edward Liddy, left, is expected to replace AIG's Robert B. Willumstad. Willumstad, a former Citigroup executive, had been at the helm of AIG since June.

AP (2)

AIG, whose shares had been on a freefall, had been on the hunt for cash to shore up its balance sheet. The Fed determined that a disorderly failure of AIG could hurt the already delicate financial markets and the economy.

Richard Drew, AP

The U.S. government became one of the biggest players in the nation's mortgage market last week when it took control of mortgage finance giants Fannie Mae and Freddie Mac. The two financial institutions, battered by plunging share prices, rising foreclosures and sinking home values, owned or guaranteed about half of U.S. mortgage debt.

AP (2)

The decision to help AIG marked a reversal for the government from the weekend, when it refused to use taxpayer money to bail out Lehman Brothers. The investment bank was forced to file for Chapter 11 bankruptcy protection Monday.

Jin Lee, AP

For many of Lehman's 26,000 employees, the outlook is likely to be gloomy with job losses expected to be substantial even if significant parts of the business can be sold. On Sunday night hundreds of Lehman employees were seen clearing their desks and packing personal belongings.

David Karp, AP

Last week, after posting $3.9 billion in losses, Lehman CEO Richard Fuld outlined a plan to sell and spin off assets to raise money. Fuld, 62, who joined the company right out of college, is the longest serving CEO on Wall Street.

Kevin Wolf, AP

For at least 15 years, we've been about too 'hood to notice, but living in America meant living well above our means. Every time you turned around cats were steady buying new things, acquiring stuff of either depreciable value, or that they did not know how to make appreciate, all the while banks (and the banks backing the banks) just nodded as if there were nothing wrong, as if world events would not affect their bottom lines, as if our fiat version of currency could never be devalued.

And now, as in all debts, and as the fundamental laws of economics, unchanged through human history have told you: it's time to pay the dopeman!