What is this financial crisis about anyway?

So when the real estate market was good, people bought houses, got mortgages, and closed.
The mortgage brokers got paid. The banks got paid.
Wall Street came up with Mortgage Backed Securities (MBS’s), and made a killing. They even had their own mortgage banks to make the loans.
The bonds were sold to foreigners and foreign governments, and Wall Street made a lot of money selling the loans/bonds.
Now here is where I get confused! People started defaulting on these subprime mortgages, and the value of the bonds went down. Wall Street wrote down their lost value (in some cases by billions of dollars), which was a tax savings used to offset their billions made in profit. Easy!
What do we care if foreign investors lose money? When the bonds were purchased they were paid for in cash. Even if Wall Street invested their own money, along with their clients’ money and the bonds lost value, they were paid for. So what’s the problem?
When Junk Bonds went bad, some people sold them at discounted prices; and the big guys bought them and eventually made home runs. No one expected the government to step in.
With the dot coms, the stock prices jumped through the roof, until reality set in and we realized that some of these companies weren’t making profits and wouldn’t for years, if ever. All of a sudden the price of the dot com stocks crashed. No one expected the government to step in.
So why did we have to bail out Wall Street?
Maybe Wall Street realized that they had "screwed up", and that they were worried about scandals, and losses, and indictments, so they needed to create a smoke screen to hide behind? Could it be that the billions of shares of stock traded every day are merely stock manipulations to generate commissions, and/or to create a crisis according to a secret agenda?
The Treasury Secretary and former managing partner of Goldman Sachs (who I’m sure owns hundreds of millions of dollars worth of their stock and/or partnerships) said, “Let's buy the "toxic bonds" so poor Wall Street doesn't have a problem.” The Bush Administration, who had already given away the store to the very rich, was consistent- anything to help the very rich, because then it would trickle down to everyone else. Yeah, right!
Or could it be that they were worried about their end-of-the-year bonuses? Thanks to the perceived crisis due to stock manipulation, Wall Street was able to fire thousands of employees and cut overhead, so that the billions of dollars in savings could be used where it's most needed - as end-of-the- year bonuses.
…………………to be continued