The Goverment Bailout: Act II.

Why this is happening: For a great general overview of the new bailout plan, click here to read an Op-Ed by Jean Chatzky of Oprah show fame.

What we can do: For smart, unbiased coverage, turn to Paul Krugman's column in the New York Times. Krugman, a current professor of Economics and International Affairs at Princeton University, tends to lean towards the left on political issues, but as an award-winning economist gives the lowdown on the bailout with frankness and clarity. Read his September 26th column for a better understanding of the difference between the first bailout plan and the current bailout plan.

How this happened:  Click here for a timeline.

Where we are now: The bailout was approved in the Senate as expected. We should hear how the House votes by Friday. Obama gave a persuasive speech early yesterday evening urging Republican representatives to pass the new plan--which was rewritten with new incentives such as tax cuts--before it's too late. McCain, surprisingly, made only a written statement.

What this means for us: A credit crunch means that bank lending will be far more conservative, therefore, it will be harder to get a loan, from student loans to mortgages, and we will be paying higher interest rates for them.