There are a couple of things I would like to add to this debate.

I share the distaste of many who believe that Big Business has been rewarded for failing terribly. That big business has privatised profits and socialised lossess. There is certainly some truth in this perception.

The fact remains that the current crisis was as much caused by average people borrowing money they could not afford to pay back, as by lax or improper lending practices. These people were then sheltered from the fallout of their bad choices through the "walkaway" laws which govern home lending.

Also, the CEO's etc who have walked away with golden handshakes are not being paid by the gov't. The bailout is shifting bad debt from the banking/financial sector, to the public.

If the economy, (ie the jobs, loans etc of ordinary people) could survive this calamity befalling the banking/financial sector without a bailout, I would agree that the bailout was unnacceptable.

I wonder whether anyone here would agree that perhaps the gov't should be bailing out the original borrowers, ie the morons who took out loans they couldn't pay back, and having those people in debt to the gov't.

Paul L,

Definately. But I don't think you can exonerate bad management from the lenders.

'These people were then sheltered from the fallout of their bad choices through the "walkaway" laws which govern home lending.'
True, but when I took out my mortgae over here, I paid $10k for insurance for the bank! I knew damn well I had a very solid financial position, earning power and a significant amount of money held back from the mortgage for emergency. Perhaps people should be left to get their own insurance if they so choose, and also not be able to walk away.

We keep hearing whenever executive pay comes into question, that the CEOs rise and fall on their performance. They don't really. They are in a win-win situation, when the very worst comes to reallity, they know the government will have to bail them out. Might be a bit different, and much stronger self regulation if those in power of these companies knew their multi-million pay packets were at stake.

Usual Suspect,

I agree that you can't exonerate the lenders. I think a 50/50 blame is probably the right allocation.

I further agree that executives who drive their companies into the ground only for them to be rescued by the gov't should certainly be liable if they are found to have acted negligently

The word is that our Australian Government) is going have to borrow 40 billion from Europe to Cover supper + some other investments made.

WOW, that is one expensive supper.

I eat a lot Bugsy.
Well it may refer, who knows? to superannuation, in fact most Australian governments have not funded the debt they owe to their employees.
It however is a spit in Sydney harbor compared to the world financial crisis.
We have debated non existent money being invested here in OLO.
And spoke of personal debt, over priced housing, credit card Christmas spending.
Yet some still think a collapse is unthinkable.
Just as payday comes so to does the day we must pay bills, that day is now.
We Aussies can get around it for a while, we can talk of China digging bigger holes and keeping us going but our day to pay is coming too.
Country towns, just take a ring 100 kilms from me, see homes bought for huge silly sums on the market for 40% less, and not getting interest at all.
Pay your bills burn the credit cards, but forget the next boom, it may take 50 years to fix this bust.