What nonsense. It isn't "unregulated" markets that caused this mess. It was government pushing in many ways to juice the market and encourage home loans to marginal borrowers, including with the Fed lowering interest rates, and myriad "anti-redlining", "community reinvestment", and other efforts to force or cajole lenders into being able to boast about expanding homeownership, especially among various politically favored demographic groups.

A free-market Republican is a moron.

Kashkari should be fired on Obama's first day in office.

Great Article! a new blog giving deeper meaning into the $700 billion bail-out http://got700billion.blogspot.com/

I have helped banks write off bad mortgages for 18 years. About 20% of defaulted loans are just written off...sold for Zero....banks don't even want to foreclose on the house because they don't want the liability of owning it or its tax liability, utility bills, etc. This 700 Billion is going to end up buying ZERO dollars worth of houses. I bet household finance & other home equity mortgagees are just frothing at the mouth to dump all their 2nd mortgages...that have zero equity value due to decreased home values. And all these crazy multimillion dollar loans for junk land housing developments that were never built? This is criminal madness. 1.5trillion has been stolen from taxpayers. Some banks DESERVE TO FAIL and THEY MUST FAIL for our economy to work properly. there are 8,400 banks in the country, good banks will simply replace the bad ones.

I agree with grim reaper. They should let all the bad banks fail and only the ones that were wise enough not to get greedy with the sub prime morrtgages should be left standing.

No one person can make these decisions, who is on his staff? He should be required to be a contestant on "Are you smarter than a fifth grader" to determine just how smart he really is.

You are an idiot. free markets did not get us here. Greedy politicians taking money from lobbyists got us here. You dumb socialist dick

OF ALL THE DUM JACK ASSES WHY WOULD THEY PUT HIM IN CHARGE YOU DUM JERKS HE WILL WAST EVER DIME OF IT AND AMERICA WILL BE WORSER THAN EVER FOR PEAT SAKES KKICK HIM OUT AND FIME SOME ONE THAT WILL DO THE RIGHT THING AND NOT RIP US OFF MORE AND MORE EVER DAY LIKE EVER ONE OF YOU ALL ARE DONING DAM GROW UP YOU DUM ASSES GET REAL AND DO THE DAM JOB YOU ALL WAS VOTED IN TO DO QUITE DISTORYING AMERICA AND IT PEOPLE

SO - here we go again - the bush administration does not want anyone who has the credentials to do the job properly as they will do the usual of sifting off the money they want to "take care" of their "friends" before any material amount gets to the root of the problem.
Even that's highly unprobable knowing the history attached to this administration.

So we are now going to sit on the sidelines and watch as we have a person go through "on the job" training while handling what could be considered one of the most critical functions related to moving the credit industry back to some level of functionality.

Again another purposeful blunder by the most inept President and Congress we have had in History.

Let see - the whole house is up for re-election - why not make a wholesale change and not bring back ANY INCUMBENTS !!!!!!!!

its organizations like acorn that got us in this mess.

So typical of partisan rhetoric from Democrats trying to shift the blame. Problems started with Democrats forcing Banks to make loans to unqualified Minorities or else face heavy fines. See proof here:

http://www.youtube.com/watch?v=1RZVw3no2A4&feature=iv&annotation_id=event_597487

Oh, so 'ol Michael Rainey wants people "with a little more experience" along for the ride..........So whom are you voting for, Rainey??

We only have one recourse. That's on November 4th. Vote the bums out! There is a serious lack of courage is this country. We are doing our kids a real disservice letting them have everything they ask for and letting them rule the roost at home. We have to straighten our priorities out. Regulation has always been needed and sadly it has been set aside by the current tenants in the White House. Time to have a new attitude!

Wow Dora, considering the incredibly poor grammar in your post, you deserve to be broke. He might (or might not) be dumb, but at least he can spell.

In Democrats own words:
http://www.youtube.com/watch?v=_MGT_cSi7Rs&feature=related

Hmmmm....another Goldman-Sachs guy. I wonder if he plays golf with Secretary Paulson? I find that to be rather coincidental....and you think these guys are going to do what is best for America and the taxpayers? They are interested in rescuing and saving their CEO golf buddies and making sure that their way of life is not affected. With these people in charge, does anybody think that there will be any kind of governmental rules and regulations about HOW the bailout money will be spent? The execs are going to run wild, just like those at AIG did, with their $440,000 "business meeting" at the St. Regis in California. I am sure no business talk was going on in the rooms when they were having their massages and facials....We, as taxpayers, are getting taken advantage of and totally screwed over. My hope is that big businesses will go under, and that will bring back "Mom and Pop" small businesses, who can take the cash and not claim it and not have to pay tax on it. Screw the government---do you think they care about you? There needs to be some kind of revolt among the American people, like the Boston Tea Party---the problem is, most Americans are too afraid to do that, and most don't know how. We need to take America back, because the rich, big businesses and executives have taken it away and made the United States a mockery among the rest of the world. They just gambled away other people's money, and ran away with tens of millions of dollars, if not hundreds of millions, in salaries, stock options, expense accounts and bonus packages---not to mention severance packages after they destroyed their own companies!! Most jobs that I know of fire you if you don't do a good job---there is no "payout" when you leave!! In these big companies, what is the incentive to do a good job, if you will walk away with a multi-million dollar deal anyway? Give me a break.

Is he from India??Do we have any Honest people with any sense in Washington, GET RID of the CROOKS. I hope the American Revolution takes care of the Jerks. My tax dollars will go to them. Rich Wall Street does not need any help. They have already lived like Kings. All of them will go to hell anyway!!!

Democrats shameful attempt to funnel money to Acorn (voter fraud) via bale out package:

http://www.youtube.com/watch?v=NhQAHKxuR1Q&feature=related

http://www.youtube.com/watch?v=NhQAHKxuR1Q&feature=related

If the Democrat Leadership (Frank, Pelosi, Reid, Bill Clinton, etc.) hadn't perverted the principles of the free market through the Community Reinvestment Act "modifications" we wouldn't have this problem. Don't go blaming the free market. Once again, government has twisted a reasonable law, thereby requiring people and institutions do things they wouldn't ordinarily do under the threats of penalties and lawsuits. Don't believe me? As Mr. Obama about the lawsuit he brought against a major bank for refusing to issue such risky loans to people who ordianrily wouldn't qualify . This whole thing is a crock. Democrat partisans WILL NOT talk about this in a factual way. They wll keep telling big lies over and over until such lies become the "truth". If you vote emotionally instead of learning the facts, you deserve whatever happens to you.

I agree with Carney and Grimreaper. The mess we're in was creating by a bunch of greedy and dishonest politicians who were traking money, favors and campaign contributions from the very people they were supposed to be regulating - politicians who allowed themselves to be influenced by organizations like ACORN - politicians like Barney Frank, Chris Dodd, the Senate majority leader and a handful of others who were elected by uneducated morons like Dora, who can't spell, have no command of the English language and no clue or perception of reality, but go to the polls and vote on election day.
Dora, if you and your friends want to be true patriots, stay home on November 4th!