Nope, because we foolishly removed the firewall between investment banks and commercial banks, allowing the investment banks to fail would have brought down the whole world economy. The question is will we learn from our mistakes.What increased our debt was our government's decision to bail it out. There was still a choice, even with GLB.
Exactly why we need to reestablish the firewall between investment banks and commercial banks. As referenced above, even "Sanford Weill , the 'one-time poster boy' for creating bank supermarkets (as noted by former FDIC Chairperson Sheila Bair), was conveying during his interview. He essentially called for the return of the Glass-Steagall Act of 1932, which imposed banking reforms that split banks from other financial institutions such as insurance companies. The conversation revolved around the repeal of the Act, which prohibited commercial banks from acting like investment banks, by taking on much greater risk. Although there are those who will dispute it, there is little doubt that this drastic climate change in contributed to the financial meltdowns of recent years."Everything the banks and their customers did wrong, was flung back onto us. It was the single greatest discrete transfer of wealth from the public to the private banking sector in the history of the world.