I also think that people here are missing the game that was played by the VCs. I have a friend working at Insight who told me that they were preparing to issue

I also think that people here are missing the game that was played by the VCs. I have a friend working at Insight who told me that they were preparing to issue loans and further funding to portfolio companies. This of course is less ideal than having the government bail their portfolio out, but they would have had no choice. So, having shot themselves in the foot by starting a panic, they decided that the best way to avoid getting in trouble was to push the panic even further to the point that it threatened the entire economic system. Personally, that is what I find so disgusting and that is the source of my animosity. I believe the fed ultimately chose to maximize the probability of avoiding a crisis over punishing these morons. I think that is wise but still not good. The analogy I choose is this. Imagine there is a forest that is due for a bit of a natural fire. We should let it burn - but wait it turns out some people built and sold houses in this forest. Instead of evacuating and having these people suffer and need to relocate, we put out the fire. Since we put out this fire, these people living in a hazardous way continue to do so. Eventually a massive fire will start and kill those people and spread to other areas that it otherwise would not have. All because we decided to stop the “maintenance” fire from clearing the brush.