Excellent show on frontline here that outlines the history of our financial meltdown pretty clearly. Its spine chilling, I strongly recommend every single person watch this. This is our history... someday we will talk to our kids and grandkids about how the biggest financial collapse since the Great Depression affected us personally. To not really understand what is happening around us would be tragic, so in my hopes of furthering the education and the discussion, please watch the frontline video.
By the way, its pretty clear the Republican party has no clue on what is happening to them, they've been sticking to stupid ideology throughout. Most poignantly, when they pointificated on the floor of Congress about why they couldn't support Paulson's financial bailout plan, then when it was voted no, the stock market completely tanked, and they had to come back with their tails between their legs to vote for a slightly revised version of the same bill.
Also, its interesting to see the conversion of Hank Paulson from a free market idealogue to one of the most interventionist Treasury Secretary in our history.
The video plainly outlines how his single decision to let Lehman Brothers fail was the leak in the damn that caused the complete global financial meltdown. It can be argued that if he would have bailed Lehman out similar to the way he bailed out Bear Sterns, we would be in a mess, sure, but not near the mess we're in right now. Lehman's bankruptcy single handedly took down AIG, caused the credit markets to freeze up and is now causing our government to spend trillions of dollars on a financial market bailout.
Sometimes, ideology gets in the way. You need to be flexible. Right now, the Democrats are showing a much greater flexibility.