It is not our government's place to bail out these financial institutions. And I am a firm believer that the only reason that Bush and Co. want to do it is because they don't want Americans to feel the full impact of this situatuon while the current administration is in office. This could actually seal the deal for the Democrats.
If these guys ok the bail out and then the new administration takes over, the failure of the bail out will be blamed on the new administration. Especially if Obama wins the election, they will point to his lack of experience.
But the problem goes deeper. When the government gets involved and does these bail outs they enable problems like this to develop in the first place. If the executives know that they can be bailed out if they screw things up then there is no risk of failure. And if there is no risk of failure, then there is no motivation to make the right decisions. There are consequences to poor decisions and when we face those consequences and accept the responsibility for them, then we grow and get better at making decisions.
I am of the opinion that Congress has been looking the other way regarding this country's debt issues because these bad policies made it look like we had a strong economy. People were buying houses, cars, appliances, etc. that they couldn't afford and the credit card companies were encouraging them to do it. So, the illusion of a strong economy is one less issue to deal with. The gamble this administration took was that they were hoping that it would crash next year, after they had exited.
There is an interview by Sara Palin with Katie Curic where Sara indicates that the government must act and do something. When Katie asked about helping the homeowners being foreclosed on, Sara said that she didn't believe that "people should be rewarded for bad decisions." So I guess financial institutions aren't people to Sara Palin.
I'm still wondering exactly what did Bush mean when he said this would be an era of accountability?