Failed financial-sector buyout

I've been saying for years now that our financial system is destined to collapse — I explain:

The main way our government has been trying to "fix" the economy is through stimulus.  More specifically, through borrowing.  Interest rates are lowered to make credit (borrowed money) cheaper.  When people borrow money and spend it, that's the "stimulus" the government is looking for.  However, the problem here is that banks do not have the funds to cover the bad debts that they have on their books — the main reason we are in this mess is because 1) borrowing TOO MUCH and thereby not paying it back and 2) unqualified people have received loans who never should have in the first place... BORROWING has caused this problem (both the irresponsible & financially-illiterate consumer and the corrupt and usurious loan agents are at fault here).  And the government thinks that to solve it we need to BORROW MORE.  Now, any economist will tell you, you can't borrow your way out of debt.  It's a feedback loop — borrow to stimulate the economy which needs to be saved because of borrowing.  (I know, our government doesn't set a very good example, does it?) It comes to a deafening squeal that a listener just can't take anymore — or in this case, a crashing halt.  This "buyout plan" seems to be a "$700B last-ditch effort to hold off an inevitable complete meltdown for just a little longer".  I'm almost afraid to say it, but I think this is the kind of shock treatment we need; an opportunity to start over the right way.  I hope we make the most of this new opportunity.

What a rant.  Leave your comments and thoughts.  I might be missing something here or just too tired to think straight!