PHOENIX -- The American way of life and capitalism are under attack because of the current financial crisis, according to one Valley financial adviser.

Bob Parker with Merrill Lynch said it will be tough to unwind the mess, but the federal government's plan to bail out Wall Street is a big step forward. Americans are going to have to tighten their belts after living as a debtor society for years, Parker told News/Talk 92-3 KTAR's Jay Lawrence.

"The person who stretched to buy that $750,000 house probably knew at some level they couldn't afford that house. The lender making that loan probably knew, `Well, you know maybe there's not a great chance this thing will be paid back,'" Parker said.

"And then what happened on top of that -- the loans were sliced and diced and packaged and securitized and sold and spread across and confused."

Parker is optimistic the rescue plan will strengthen the dollar and trigger a comeback.

"Obviously, people know how weak the dollar is. It's a negative for U.S. multi-national companies, for U.S. companies that export. But, it's something we have to do, defend the dollar as a nation, and I believe this will help."

Parker said an example of a successful bailout is the government's rescue of Chrysler 30 years ago, when the government ended up making money.

The cost of the proposed bailout effort is equal to about $2,000 for every man, woman and child in the United States, said Parker.

As for blame for the current economic mess, Parker said there aren't enough fingers to go around.

"The traders on Wall Street, management on Wall Street, right down to the basic level to the guy who borrowed the money. It's the people who did get in over their heads. Not all of them are going to get bailed out. Not all the companies are, either."

Parker said it's still unknown if the bailout will help thousands of Americans trying to hang onto their homes.

"The thing has not been flushed out yet, so we'll see what they do, if anything, for those people who are being on their mortgages. If Barney Frank (Democratic congressman from Massachusetts) has his way, there's going to be a lot done for those people."

If the volatility in the stock market has you considering whether to cash out your 401K to pay off debut, Wayne Stutzer of News/Talk 92-3 KTAR's "The Smart Investor," advises to forget it.

"`If you have high interest debt -- which I define as anything over 8 percent -- knock it down," said Stutzer, senior vice president of RBC Dain Rauscher.

And, if you're looking at a mortage rate above 6 percent, Stutzer said, "Get Active. Let your fingers do the walking. Mortgage rates have come down. Home equity lines of credit have come down. So here's an opportune time right now to restructure your debt to a lower level, then pay it off quicker."

Charging debt to a credit card you can pay off in two years time is less expensive than paying the tax and penalties on a 401K cashout, Stutzer said.

"If you're under 59 and a-half, you're going to be subject to penalties of 10 percent plus ordinary income tax. I'm not a big fan of sending 30- to 40-cents on the dollar back to the government, which was your money."

The government's plan to save banks drowning in bad debt is reassuring, said Stutzer.

"What this process is now doing is that it's going to be safe to come out of your foxhole. What's the foxhole? Buying U.S. Treasury bills or staying in cash because that was the only place people were feeling comfortable."

People can now invest in more productive avenues, such as buying stocks or corporate bonds, Stutzer said.

As for the bigger picture, Stutzer believes it will take more than a bailout to fix the financial world.

"'I would say that the big political process that should be talked about right now is how to regulate Wall Street for the future and how you get this economy growing. Because if you get this economy growing at its full potential, you'll solve the banking problem, you'll solve the housing problem, you's solve the budget deficit."