This American Life's latest episode deserves another mention.  Robin and I listened to it last night and I think I fully understand the most recent credit crisis.

It's well worth your time.  Go here and listen to episode 365.  Note that it's only available as a free download for another 5 days or so (after that it's 99 cents).

After you listen to the episode, go read this entry from Beat the Press.  That whole $700 billion bailout thing...did congress and the media get herded again by the Bush administration into making a hasty, incorrect decision of critical importance to the country?  I suppose only time will tell.  The more alarmist/cynical web sites I read say the Bush administration seems to have this down to a science by now...
    Step 1: Declare a crisis.  Use very scary language, and scare everyone into a stampede.
    Step 2: Block all routes and exits except the single one that you want the herd to take.
    Step 3: Wait for the herd to do the only thing it can--run through the only exit available.