Will The Bailout Work?

In light of studying the Great Depression of the 1920's, i was looking for more articles on the current economic situation that we are in. The primary issue at the moment is that the credit system around the country is frozen, because too many people have taken out loans that they cannot afford. To this point, much of what is going on seems to parallel America of the 1920's except that now the government is attempting to do something about the problem. With the now passed $700 million bailout plan, the government is planning on buying up all the banks bad loans and debts, and as a result, freeing the credit industry once again. This all sounds very nice, but it seems to me that it can't be that easy, that more is going to have to happen in order for the economy to right it's ways. Thinking of this, i found an article on CNN in which they explore why the bailout won't work. The author says that the bailout is just a temporary fix, and that people's confidence in the market wont increase, and nobody is going to buy more after it is enacted. The author also says that the banks won't want to give out any loans still because they don't believe that the bailout will be effective. As far as he's concerned, the bailout is just $700 million gone to slow down the decline of the U.S. economy.
To me this makes sense. The way i see it is that it must be the system itself that is flawed. If Americans before took out loans that they couldn't pay for, whats going to stop them from doing now, or later on. I don't see how the bailout will stop the problem from happening again because it is just putting money into a system that is failing. While i am not presenting a better solution, i just can't see how this is going to help, not to mention the fact that my children and grandchildren are going to have to pay for all of this. I guess there is nothing to do but wait at this point and see what happens to the market. http://money.cnn.com/2008/10/04/news/economy/will_it_work/index.htm?postversion=2008100408