NEW YORK STATE -- "This is a huge, huge situation we're trying to confront," said Governor David Paterson on CNBC Tuesday.

On Fox Business, Governor Paterson continued with his message: "This is almost like the financial reorganization in the 30s. It's actually that serious."

Governor Paterson made the rounds in order to warn that if insurance giant AIG fails it could create a "serious crisis."

"This would be an effect on the entire market if AIG goes down," Paterson said on CNBC. "It affects jobs. It affects policy holders, drivers. Even if you aren't a customer of AIG, you get in an accident with someone, there is an effect there."

It's why Tuesday, financial officials wrestled with what to do. Experts say the company is sound, it just doesn't have enough cash and believe AIG is a bigger concern than Monday's Lehman Brothers bankruptcy or Bank of America's purchase of Merrill Lynch because it operates in 130 countries, has over 100,000 employees and over 70 million customers.

"We're seeing a lot of credit tightening," said Albany Financial Group Certified Financial Planner, Leonard Valletta.

To create confidence, New York's Fed Reserve bank pumped $70 billion into the economy, $50 billion more than it had planned, though the Fed didn't move its key interest rate.

Paterson and state insurance officials helped bring about talks to look at keeping AIG afloat after a private deal didn't happen.

Valletta says the government will have to step in when necessary, but said, "Some of these obligations the federal government is taking on will have to be paid for with tax dollars in the end. I think in the end it sends the wrong precedent."

And if you're looking to get a loan for a car or home down the road, Valletta says it's the same advice as before - get your own financial house in order first.

"A lot of these companies did not practice good fiscal restraint. If you're a household not practicing fiscal restraint, you'll pay the price as well," Valletta warned.

Meanwhile, Governor Paterson warned more state cuts may be needed soon. Twenty percent of state revenue comes from Wall Street, where losses from Monday's mess alone are still being figured out.

On CNBC, Paterson said, "We probably lost a billion dollars yesterday."

Paterson says he may call another legislative session to make even tougher budget cuts as we all wait to see what Wall Street means for Main Street.