AUGUSTA, Ga. - It is making news headlines around the world, the $700 billion bailout for America's financial system. But many people aren't sure about what the bailout means.

What is the bailout?

It is a proposal of $700 billion to buy mortgage backed securities from financial institutions. A mortgage backed security is most easily explained as a bond that banks or mortgage companies sell to investors. But when homeowners default on their mortgage loans those bonds lose value.

Why is the government proposing to buy these bonds?

So many people have defaulted on their mortgage loans that financial institutions have been left with millions of dollars in bad debt. The Fed says this would allow lenders to continue loaning money for things like homes and cars. Otherwise the business world would come to a halt.

Do financial analysts think $700 billion will be enough?

Many say that $700 billion is not enough and that it will really be more like $1 trillion needed to bail out the institutions. Although this solution may seem problematic Augusta State University Professor of Finance Brigitte Ziobrowski says something must be done.

“What they're trying to do is quiet peoples concerns about the safety of their money. We need stability in our financial system. Everything is important for everything else and it is important for the federal government and really they are the only ones who are big enough,” said Ziobrowski.

Right now the U.S. is $9.7 trillion dollars in debt. Ziobrowski says that will likely reach $10 trillion by the end of this year. It's the worst deficit our country has ever seen.