For those of you interested in these things, the current Lie-bor scandal, combined with the Corzine/MF bankruptcy, has exposed the ultimate corruption of our financial system. Essentially, if you favor increased "regulation" of finance and propping up large institutions with government money whenever needed, you need to explain not just the utterly predictable greed of financiers, but how it was that the regulators for two of the most heavily regulated sectors anywhere in the economy abjectly failed to protect the public from what in any other area would be considered outright theft and how they did so under both R and D administrations.
So it's odd that libertarian me finds the line of argument in the attached link compelling. I've come to the belief that optimally we would have a free banking system without the possibility of bailouts or inflated credit and that the Corzines of this world would find their lying, dishonest butts occupying a bunk in a federal prison forthwith along with anyone in NY who participated in or had knowledge of the Lie-bor schemes. However, if our political system cannot achieve a disciplined system like that, and it seems that it can't, then we must do something to separate the payments system from the casino. (NB Treasuries are firmly part of the casino now).
The problem in '08 was that an army of knuckleheads failing to pay mortgages they should never have gotten in the first place was going to cause immense damage not just to people's retirement accounts (painful, but a risk that was accepted at deposit), but that it also stood a pretty good chance of hosing their demand deposits - which would have been catastrophic not just to them but to an enormous number of their economic connections. From what I can tell Dodd-Frank (just the name tells you all you need to know) does nothing to address this issue and is simply an excuse for yet more political interference in things that politicians know nothing about.
So come November, we need to be looking for people who actually know this and will do something about it - people who have the ability to say "NO MORE" to the financial industry, who are willing to let them fail even if that means a major decline in the value of real estate on the Upper East Side, in the Hamptons, the Vineyard or a number of other places currently infested by their ilk. Like machinery, you can't really fix it unless you clean it first.