It MUST be really BAD.

This is what happens when we have a trillion dollar war in Iraq over nothing but oil and SUPER high gas price gouging going on that inflates the cost of everything, plus unregulated shark loans in the housing loan business and to top it all off, a couple of criminals in the Whitehouse that can't be impeached, no matter what crimes they commit. Thanks to Nancy Pelosi.

From the WaPo:

Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke met with leaders from both sides of the political aisle on Capitol Hill on Thursday to begin work on a plan of action to help relieve banks of their toxic assets. According to a statement by the Treasury late Thursday, the meetings focused on a "comprehensive approach to address the illiquid assets on bank balance sheets."

There is growing consensus in Washington that the federal response to the credit crisis has fallen short of a solution that would restore confidence and stability in the financial markets.
The creation of a new entity to deal with the crisis is just one solution being explored.

I think it is alot worse that Washington and the Bush Administration are letting on, but you know the Bushies, they loves to hide things from the American people, particulary bad news. And this is ALL the Bush Administration's fault, and everyone KNOWS IT TOO.