Agreed. I think once the firehose of gov't cash was turned on the problem and things showed signs of stabilizing, my rather low opinion of politicians leads me to believe they began to contemplate what else they might accomplish in their own interests with so much money
Edit: Could only agree with draconian punishment if it was comprehensive and included the investment ratings agencies who bowed to pressure and rated the securities investment grade and the loan originators who relaxed standards again and again because after they sold those mortgages packaged as securities they believed it was someone elses problem
We would need bigger jails, and would spend an eye-opening amount of time and treasure on such prosecutions though
True.
A dozen high-profile prosecutions might be enough to bring some sanity back to the industry (for a time...it worked with the S&L prosecutions for a decade or two). The Goldman Sachs "Moral Hazard" euphemism ought to be truly shown for what it was.