In the last few weeks, the news about financial institutions failing has been constant, with many officials claiming evenmore widespread economic problems if the federal government did not act. Last night, President Bush addressed the nation to discuss the situation and his $700 billion bailout proposal. "The plan would allow the government to buy up unmarketable assets, such as mortgage-backed securities, that economists say are clogging the financial system and blocking access to many types of credit. After the markets recover, the government could sell the securities to investors and recoup much of its costs. But many Democrats as well as Republicans say they want more protections for taxpayers, such as allowing the government to gain a potential equity stake in companies that participate," reports the Wall Street Journal.

David Walker, former U.S. Comptroller and current president of the Peterson Foundation, in an op-ed in the Financial Times related this financial crisis to the gvernment's deficit spending and growing national debt. "Beyond the turmoil for banks and homeowners, however, there is a super-sub-prime crisis brewing in Washington. Our fiscal policies have created a disconnect between today's citizens and future taxpayers. Today's taxpayers benefit from high government spending and low taxes, while future generations are expected to pay the bill. Our real challenge is where we are headed on our do-nothing fiscal path. Washington has charged everything to the nation's credit card - engaging in tax cuts and spending increases without paying for them."

How have you been impacted by this financial crisis? Has President Bush, or anyone else, sufficiently explained the situation? Share your thoughts and vies in our Open Forum. Also, you can learn more about the national debt and federal government deficits in the Association of Young Americans' Deficits and Debt issue paper.