I concur with much of what you say. But I think that the ultimate cause of the financial crisis is something

that you have not identified. It is simply the fact that the financial sector, unlike productive sectors of the economy, charges fees based on a

percentage of transaction value instead of based on work done.

The rest of the economy has to produce something by toil or by thinking. And

is paid salaries which are effectively based on an hourly rate = time spent.

Until it is made illegal to charge a fee based on transaction

value instead of work done the coffers of the financial sector entities that do this “work” will continue to overflow with ill-gotten gains.

When you think about it, there would have been no financial incentive and no driving force behind playing “hot potato” with CDOs if there had not

been a fee associated with these transactions that was based on a percentage of their alleged face value.

Regards
Mike Stenford