you can't blame auto-bailouts on bush, he really had nothing to do with
that.

the other bailouts you can, altho its worth pointing out dems supported
them too.  as to why things got to that point to begin with, its
incredibly complicated and endlessly debatable, but what is clear is
that it took inane and inept actions from the gov't, both in
over-regulation and under-regulation, to make it possible.  (that,
katrina, amtrak, etc...  are all good reasons not to trust the gov't to
get things right)  all the private sector did was whatever it was
allowed OR told to do, and of course that often isn't for the best, but
it is the reality.  its simply a reflection of gov't actions.  the gov't
created the environment that lead to the meltdown in many various ways,
and yet the gov't takes no responsibility for it, and blames the private
sector, which really is ridiculous.

within the gov't itself, the right attacks the left for crazy lending
rules forced on banks where no equity or collateral was required, and
the left attacks the right for allowing the repeal of an act which
previously had kept investment houses [brokerages] and banks separate. 
everyone had a piece of it as far as i can tell.  and i don't say that
just to be evenhanded, b/c often i don't think culpability is shared,
but in this case, i think it is.

having said that, there's quite a few things that could be done.  first
of all, raise the amount of on hand equity a firm needs to have vs its
risk and investments.  that would lower the overall risk and lower the
"boom" temperture when things are going well, (ie not feed into false
positve frenzy).  second, repeal the CRA act, (google), and require at
least 15% down when buying a house.  third, highly regulate short-term
ARMs.  fourth, bring back glass-stegall (the brokerage/bank rule). 
fifth, use both mark to market AND the old longer term way of accounting
for assets.  (that was a HUGE disastor, and still exists!)  

finally, pass the FairTax.  (google)  it would solve our current crisis
in a few months time.


-- 
MrSinatra

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