The diagnosis and the remedy

Wall Street developed a “culture of irresponsibility,” the president said. Lenders didn’t hold on to their loans, but instead sold them off to be repackaged into securities, which in turn were sold to investors who didn’t understand what they were buying. “Meanwhile,” he said, “executive compensation — unmoored from long-term performance or even reality — rewarded recklessness rather than responsibility.”

Op-Ed Columnist - Out of the Shadows - NYTimes.com

Source: www.nytimes.com

President Obama’s plan for financial reform basically punts on the question of how to keep what went wrong from happening again.

That should be in a gist what happened to the US economy!!

And the remedy --
"Unfortunately, the plan as released doesn’t live up to the diagnosis."
PAUL KRUGMAN