The Elephant in the Room

OMG WTF AIG.

What can we say about this. I was slow to write about it because it is such big news that I don't know what to think.
If America chose to nationalise its energy market or water markets because of a similarly comprehensive, immediate and catastrophic failure in these markets would people accept it the same way? I don't think so. This happens all the time in the world. Generally with the word Socialismo being muttered. Is it somehow better or more necessary to aide financial markets and insurance providers than water and heating oil?
It seems necessary to guarantee Freddie and Frannie - possibly AIG - because of the way our economy is based. To lose the construction industry would cause a cascade effect through the whole system.
The following article (IMHO) has an interesting view and some original information.

Wall Street Journal: AIG

I think I will need a lot of time to fully decide how I feel about this. Certainly something had to be done. Is this the best way? Already we are hearing this is the worst market condition in fifty years! That beats the dot.com bust, the early 90s, the oil shocks and any problems associated with 'nam or Korea. I hope governments, individuals and companies start to look proactive over the next week or so because if this becomes the worst market condition in a century I don't think synthetic shoes make as good a soup as our great grandparents enjoyed in dickity-nine.

I am especially interested in hearing what you think on this topic as it worries me. Frankly it should worry you too.