The current chill in credit markets is reflective of "the market" borrowing a page from girls gone wild. Uninhibited lending a.k.a ninja loans - no income, no job, no assets loans, lack of financial education and the belief that free markets are the nirvana of economics. The US in the past 30 years has done nothing but borrowed and spent, we have effectively lived a hedonistic life at expense of our kids and grandkids.
Partly the belief stems from the "voodoo economics" of supply side economists mainly republicans and spineless democrats who have basically reneged on their responsibilities. The very politicians who go around talking about the founding fathers should try and learn from Ben Franklin's aphorisms "Its better to go to sleep hungry than wake up in debt" 
The same fat cats who lobbied to dismantle regulations like the Glass-Steagall act and have railed against new laws are now being bailed with mine and your tax dollars. Don't forget treasury secretary Paulson who is conveniently throwing away your tax dollars once led Goldman Sachs.
I believe free markets are the best thing that have ever happened to mankind but they can be the "nirvana" only if adequately supervised and supervision should go hand in hand with financial innovation not follow it. I like the independence of John McCain but I was shocked yesterday when one of his proposal to get out of the crisis was to dismantle the "mark-to-market" mechanism. Basically he is proposing to forget and let the banks bury their losses, Rather than propose more tighter regulation this guy is proposing to even throw away the existing rule book. Mr McCain please start thinking and talking like a President if you want my vote, not tow the same staid lines that have gotten us here.
- Give the Fed oversight powers over investment banks
- Combine the Commodities & Futures commission and the all the myriad of agencies that supervise the market piecemeal today under the SEC
- Triple / Quadruple the SEC budgets
Its time to feed and nurse the hen that has laid golden eggs not make an omelet of the eggs!!!
