If you want a more complete explanation of what has happened to the Financial Markets lately, here's an excellent explanation.
While it's true that most if not all of the panel members are politically partisan, it's still a worth while presentation of what caused the problems.
More importantly, it clearly indicates hope for the future, this to shall pass.
As Krugman points out, all financial disasters are bailed out by governments, that's one of the reasons we have a "government".
They don't seem to be there to help avoid problems since they played an important part in helping this one occur.
As an eternal optimist, I think we will come out of this crisis better off in the near term. Less debt in the system, better financial structure at our financial institutions, more over sight of market activity and a lower tendency to take on too much risk among many investors.
One of the best points of the video seems to me to be an clear statement that we really have not been able to model risk effectively or accurately.