As a non-economist, the way I understand this crisis, it corresponds to gross incompetence on the part of many in the financial industry.
An analogy is as if some engineers built several nuclear power plants using some complex “innovative brick instruments”: “We don’t know the specific composition of these bricks, but they are cheap and will reduce our costs, and thus increase our profits, so we’ll use them to build the nuclear power plants. Based on some simplistic assumptions, these bricks will work fine and not disintegrate.”
Then, something happens that violates the simplistic assumptions, and all the nuclear power plants in the US are in danger of blowing up and damaging the entire country, unless the government steps in and spends $700 billion to repair the damages.
If something like that happened, there is no way the engineers and supervisors who built those plants would escape without being charged with gross incompetence, gross negligence, etc.
In the current financial crisis, won’t anyone be held accountable for the massive amount of stupidity and incompetence in the financial and banking industry that brought us to the point we are today?
(Held accountable as in: losing their job, paying a huge fine, going to jail, etc)