Comment by Loughla

I think where we go wrong is in bailing them out, but not nationalizing them afterward. If we're going to make the losses public, then the gains afterwards become public as well. The executives, though, should be prosecuted, or at the very least removed from being executives and board members at any financial or ancillary institution ever again.

But for real. Why not nationalize the failed institutions? It's not as if the incentives can get more perverse than they are now, unless I'm missing something.