2)On your second point, re bankruptcy judges. As a front-line lawyer in this disaster – you are off here as well. First, the judges/magistrates already have this power through a number of rules, local orders and the power to stay a proceeding to force a reformation. Second, the "default" or "credit event" is already calculated into loan costs; an option for a less costly alternative to full default should be welcomed. It would lower transaction costs, legal fees, and should lower mortgage costs.

3)By far, the "talent" you write about is non-existent. "Talent" is the basis of executive compensation in a sad few companies. Cronyism, nepotism, and a clique of insiders, lobbyists, and well-born, are more likely the way "executives" are chosen and rise through ranks. Talent has little to do with it. Thain, Blackfein, and Mack were paid $179 million in cash bonuses and special stock deals. $179 million. Fuld at Lehman made $22 million. One-fifth of a billion dollars. Line up the rest and the bailout is done without government money.