Who will spend our $700 billion? Meet 35-year-old Neel Kashkari

The problem is more complex than it is being represented in the media and by the politicians (who are as oblivious as a Tibetan peasant to the situation (nothing against Tibetans)). Institutional investors bundled the highest risk mortgages into mortgage backed securities and then sought to eliminate the risk of default through credit default swaps. A credit default swap is a private contract between two institutions wherein one party collects a payment and promises to cover the expense of a default. It is actually another form of insurance, but if they were called insurance policies, they would be subject to regulation. Credit default swaps are unregulated, and have never been subject to any form of regulation. This economic "crisis" is the result of criminal mismanagement and poor judgment in the extremist on the part of the executives who have been collecting hundreds of millions of dollars for years. It is the acme of the concept of "created wealth" much touted in business teachings these days. The incestuous relationships forged between the financial houses created "value" out of thin air, and deluded themselves into believing that there was no risk. They will not learn their lesson until some of them end up behind bars.

Barkeep give me another and make it a double!

My above point stands alone.

But there's also the aspect that nearly all of the Deputies, Assistant Deputies, Assistants and so on as far as they could do it in this administration have had the titles "temporary" and "interim", sometimes both. These titles work wonders in various ways.

To the commenter who said "...drop the interest rate two points..." are there two points left?

d is probably the rocket scientist!

Shiao Guay-

Right on, my brother.

WELL SAID DUNCE!!!!!!!!

Bush, you never fail to amaze me..You do
realize that your watch/leadership of our country will go down in history as the very WORST! Some legacy. I hope this dude isn't making a fortune..with our
money. Honestly, George, your taste is in your mouth!

anyone else notice the irony of his name

kashkari (cash carry)! yikes...

and this is, of course, what he will do with the $$ - make sure he and his friends kari off with the kash.

as a vp of goldman-sachs isn't this putting the fox in charge of the hen house??!!!

We don't want a right wing REPUBLICAN trying to get us out of the trouble we are in. Bush is the cause of all of this and he should do more than assure us about HIS mistake. Kashkari isn't that great at solving everything after all he was only a Rocket Scientist. J don't think this proves the fact that he can solve our money problems. If all of us AMERICANS are in the same boat there has to be something we all can do to solve it, If anyone has an answer don't keep quiet call WASHINGTON. I'm 75 years old and to damn old or my voice would be heard.

go, neel, go! Couldn't be any worse than the Jimmy Carter days of 22% interest.

Remember folks, what goes up - must come down! As a real estate broker for 31 years, the fraudulent packaging practices of the brokers who put these loans together, along with the cooperation of the borrowers on these defaulted loans should be investigated and punished.

I'm so sick of people blaming democrats for this mess... It is seriously ridiculous.I blame corporate executives and banks. They give themselves big bonuses and salaries that are absurd, take money, and are extremely greedy. Did you know that AT&T (for example) paid their execs over 74 million in one year even though their company was struggling??? 74 million!

You idiotic people can blame democrats all you want but I know that if it wasn't for them I would not have a home. The problem with the home-mortgage market is that people don't look at the fine print and they get a loan with an adjustable rate that ultimately screws them over in the end. People who get there mortgages at lets say a thousand a month fell secure, they believe they will make it but then the rate increases and then before you know it you now have a $3000 dollar mortgage. It has happened to people who had amazing credit and enough money to afford a home. They just didn't know what was going to happen. And I know for a fact that banks lie to you about these things. I had a friend who bought a home on her own, something simple for herself. She went BY HERSELF to get things finalized and asked straight out about a any rates changing in this contract. He told her NO......A few years later she lost her home. Her mortage started out at $1100 and went to a whopping $3600

I agree with what grim reaper says. We need to get rid of those "bad" banks that wanted to be greedy and keep the good ones.....

I just hope we can get out of this mess. And soon.....

OMG! He looks like an EVIL person with a BIG ego. WSipe that "smarty-pants" look off his face, someone.

If this guy is so smart, how did all of those CEOs get all of that money so fast to take themselves and their employees to (or build) that luxury spa in California? It is time to start using that money from the BOTTOM (taxpayers, in your language) up instead of starting at the top (those who got extremely rich on the middle class). Are you going to make those CEOs pay back those millions of bonus's they received that was a large part of all the problems with the banks and other companies that are now in trouble and the taxpayers are asked to bail the. out?

Deregulation and unregulation weren't the culprits. Check out:
http://www.youtube.com/watch?v=1RZVw3no2A4

THE TIME HAS COME "REVOLUTION" AS JOHN LENNON SAID, LETS VOTE "THEM" ALL OUT OF OFFICE, THE POLITITIONS AND THE CEO'S WHO GOT US IN THIS TERRIBLE MESS, GET THE MONEY BACK FROM THOSE WHO STOLE IT AND GIVE EVERYONE OVER 18 YEARS OLD $1.000.000 OVER 5 YEARS SO THEY CAN BUY THAT NEW CAR, PAY OFF HIGH INTEREST CREDIT CARDS, PUT ANEW ROOF ON THE HOUSE THAT HAS LOST MONEY FOR THEM, PAY BACK SCHOOL LOANS ETC THIS WILL STIMULATE THE ECONOMY AND KEEP "WE THE PEOPLE" WORKING.

I wanna bail out from the bail out. Dina wan it n foist place. Now luk at wot the dems gave us. kinda like what they gave fanny n freddy when they forced em to write loans for people who couldn't ford them.

Michael, you're an idiot author. The problem was caused by policies and practices that were made into law by ACORN and the rest of you Dumbocrats. If you can't pay - you shouldn't be allowed to play

This guy is going to screw the Middle class and the Poor. And he won't even know he is doing it.

oh be honest, you would all find something to complain about no matter who he was..its what you do best, troll the forums for something to complain about and someone to critisize. Hell, half of you cant even spell what you're complaining about. How's your finances?