The Wonders of Free Enterprise
And, just to be clear, all the bluster and bullshit flowing from the culprits at the head of these financial concerns (look here and here for the must egregious, but hardly unique examples) does not alter the above diagnosis, which is basically Economics 100. These guys are hardly geniuses; they are crooks and liars. They should not just lose their jobs for running their companies into the ditch, they should be prosecuted for any provable illegalities. (The latter possibility should be investigated by systematic government inquiry.) And, if found guilty, they should do hard time. (By 'they' I mean not only the CEOs but their myriad minions.) A reasonably well functioning set of financial markets is a public good and the guys are working as hard as they are able to subvert such markets to their own advantage.