A.I.G., Greece, and Who’s Next?

The fundamental question to start with, in credit expansion (financial system, housing bubble, financial innovation, etc. crises) is: Qui bono and - with history of crisis over the centuries well documented and described not only in the lowest MBA curriculum, didn't they actually know what they are doing and what the likely outcomes and scenarios will rather likely follow? By they and them I mean Maestro Greenspan's team at the Fed, top honchos at Goldman Sachs and Wall Street, some in Washington, etc. When Greenspan ovesees years of monetary expansion on steroids, 44-year record lows in interest rates stretched over record period of time ... isn't it reasonable to expect that tangibles (such as housing) will experience inflationary prices? I would not exclude that a rather rational thinking was behind this expansion, magnified by defending financial engineering which spread the bubble built on thus inflated US housing market far and wide around the globe. The last hurrah of taking advantage of dollar's post-war role as reserve currency? Big borrower's attempt to soak his debtors, this time starting with communist China? Goldman Sachs supposed role in building up swaps built on Greek bonds - a blessed self-enrichment plus a neat sideplay to undermine euro in its soft belly? Again: It is popular among masses to blame housing + credit crisis on those who got too big mortgages and some interests eagerly feed such interpretation. Mr. Greenspan's Fed had no macroeconomic basis for such monetary + credit expansion and (intentionally?) failed to perform its duty, thus triggering and allowing, with support of Wall Street, inaction of Congress, SEC etc. the environment to which other, lesser players (predictably?) responded the way they did. While Greeks' lack of efficiency represents a burden on Germany economic engine, US (and UK) deficit-driven economies are not shing examples of responsible management and certainly do not give any right to give lessons to others how to run things.

I don't think this poster was drunk. There is more here than maundering.

Understand that our financiers have again become "Malfactors of great wealth"

They do not wish to destroy their money machine. They will not allow others to destroy it.

Our financial gurus have told them how to run things and brought them here.

Not letting the gurus lead on is the only constructive thing done.