Wall Street Meltdown: What we know and what we dont?

Facts of the matter are:

• Lot of Americans have lost a sizable chunk of their retirement savings and they are really mad and concerned about this whole fiasco
• The remaining two investment banks, Goldman Sachs & Morgan Stanley have lost their investment bank status and have been 'regularized'. Yes, they will have to start accepting deposits. Probably, they were forced to request a change in their status by the Fed.
• Replicans and Democrats together(really?) are trying to finalize the details of the biggest bailout in the history
• Value of investments in US by China, UAE & India have been wiped-out, almost

While possibilities exist that:

• There are many more skeletons hidden in the Wall Street closet
• Availability of capital in future will be scarce
• If we do not see too many foreign countries helping with the bailout, that will signal that even after the meltdown, assets are overvalued. And that will be bad news!!! Need to dig further; why Germany said no to participate in the bailout?
• As the capital will flow to foreign markets increasing the supply, it will decrease the threshold for even more projects in those markets. Majority of the capital would still be attracted by US owned businesses in BRIC or VISTA countries. Meaning? Buying the stocks of those companies which have global presence may present a money-making opportunity. Now, why is the bailout necessary?