"Goldman Sachs had said in the past that its exposure to A.I.G.’s financial trouble was 'immaterial'."

Well, it appears it was immaterial because they had set things up so they could not lose.

It seems fairly obviously that a relatively small department within AIG, the Financial Products division, was operating under the regulatory radar and was used as a patsy by a number of the Wall Street banks, who had no worries about losses because of their power to obtain the US government as a backstop to losses.

This is a scandal of epic proportion. 'Outrage' barely manages to express the appropriate reaction.

Obama is an educated, intelligent President, and can hardly retreat behind the clueless buffoon defense used by so many CEO's and officials. He is directly responsible for this outcome now.

The honeymoon for the Obama Administration is over. Geithner and Summers should resign over their handling of AIG, and there should be no question that the Fed has no business regulating anything more complex than a checking account.

The difficulty with which we are faced is that despite their mugging for the camera and emotional words the Republicans are owned body and soul by Wall Street and Big Business.

Getting behind a third party for president is symbolic but ineffective. Giving a significant number of congressional seats to a third party will send a chilling and practical message to both the President and the Congress that enough is enough.

And in the meantime

Contact Your Elected Officials