Well here is a local (sort-of) take on the credit crisis: a major retail bank (i.e. not just a Wall Street investment bank) fails. Wa Mu which expanded like nuts and was investing in mortgages and mortgage backed assets found itself in big trouble with the subprime mess and the collapse of the residential housing market. Seems like only yesterday that they were the darlings of the banking industry.
This is, folks, an unprecedented shake out of the banking industry, and yes you should worry. The Paulson Plan may not be perfect, but doing nothing is not an option.