Combine all that spending to boost home prices with a still-bloated financial industry – too big to fail, expecting to get bailed out, and rewarding executives with huge bonuses in exchange for taking big risks – and, warns Barofsky, the U.S. financial system is headed for The Great Crisis, Part II. "Even if TARP saved our financial system from driving off a cliff back in 2008, absent meaningful reform, we are still driving on the same winding mountain road, but this time in a faster car," cautions the report.
The thing is, though, that we've got to keep people in their homes, right? So let's break up the banks, put caps on bonuses, and, well, it seems like we're gonna have to let the worst of the idiots fail. Or, rather, be foreclosed on. Read the rest of the article here.