All Dried Up?

The Federal Reserve will "buy large amounts of short-term debt in an effort to stimulate the credit markets, which have all dried up." I am truly confused by this. This $700 Billion bailout is one thing, but a strategic plan on how to prevent this from happening again should go hand in hand. Why is it that I know better? If that is the case I have to assume they know better, but may not be changing the system. I keep hearing people say the "American Dream" of owning a home is over because the rules are gonna change.