Normally I would have waited until Thursday or Friday to post, but there is alot going on.
This link at Yahoo Finance has a good basic set of questions and answers about what is going on and is pretty clear.
The Wall Street Bailout Plan, Explained.
There is also more at Freakonomics (links below). The first one is about a letter to Congress signed by over 100 economists, urging Congress to be careful and deliberate on whatever they do. Then Steven Levitt questions how the government can make a profit buying these assets if the private sector does not want them. The only thing I can guess is that by buying these mortgage assets and restoring things to normal and restoring confidence, their prices will go back up and the government will make a profit. The alternative is not doing anything and see the financial system shut down (at least that is what Fed chair Bernanke and Treasury secretary Paulson say). But no one has stated how much doing nothing will cost while we know the cost of the bailout is $700 billion.
Economists on the Bailout