But here's the thing.

It's never worked before. Usually, a collapse of financial markets doesn't lead to sound financial reasoning. It doesn't lead to getting rid of idiotic financial maneouverings of being over-leveraged. The Great Depression teaches us this.

What history shows, is that it usually ushers in an era of "Communists in Hiding" (i.e F.D. Roosevelt) and economies get burdened with moronic socialistic plans that kill economies for decades afterwards (i.e. Social Security in the U.S.)

Rather than return to TRUE neo-classic objectivist economics (Which in my opinion has NEVER been given an opporunity) - they turn to the 'easy route'. Socialism. Aka - steal money from people who have worked hard to earn it.

@aileron: well, socialism (or any other form of dictatorship) is probably the last thing what the economy + financial markets would need now :-)

j.