By the way, to add to your answer about impact to "normal people", it should be said that it might keep inflation high (for example if lending rates are cut to diminish the impact to financial institutions).

Have your finances in order and keep a reserve of money for tough times. This rule is always valid, but it's even more important now.

EDIT - I just found out that the FDIC may also be in trouble:

http://finance.yahoo.com/tech-ticker/article/56994/Top-Economist-Americans-Should-Worry-About-Bank-Deposits-if-Congress-Doesn%27t-Act?tickers=LEH,MER,BAC,AIG,WM,^DJI,^GSPC

Well, congress would act in such a situation, I'm sure of it. Plus, alot more banks have to fail for this to happen. I just don't see the FDIC running out of money.

what a jackass Greenspan is.

He is the one who started all this crap back in 1987.

he created the bubble.  I remember him and clinton laughing about lowering interests rate would solve many problems but it started the bubble.  clinton and Bush wanted more americans to own homes and they allowed banks to create loan practices that made almost anyone to buy a house - and made billions for those people who got us into this mess.

Greenspan should be ashamed of himself.

We need Franklin Roosevelt and a Newer Deal.

We are not headed to another great depression, its not nearly as bad as that

Well, down down 500, so i guess it just happened later in day

Well, I hope he's proud of his creation.

I just took out my money from AIG.
I'm glad I did. where to put them now?

I'd say either manure companies or fan companies.

3 down, 2 to go. Hope they survive.