Muddle in the US

"The muddle in the US only proves that industrial nations do not necessarily have the monopoly of wisdom."
A quote from a article that I read recently.........and I am convinced !

As I type this the 700 billion USD bail out package for the US financial markets have been approved. It clearly comes across as a measure to save the economy from sinking.

Numerous questions throng my mind as I read about the crisis and how it has snowballed into such a large catastrophe. It's nothing short of greed and stupidity!

1) What were the financial watch dogs doing when the greedy firms were taking such risks to make a killing

2) Why did the numerous nobel laurets and famed economists of USA fail to predict this. Even if they predicted, did it go to deaf ears.

3) In a capitalist economy is it right to flirt with the tax payer's money to save a sinking ship.

4) If you let them sink, are the consequences severe. What's the guarantee that such a thing would not be repeated.

At the same time it's nice to see Indian markets fairly insulated from the turmoil in the US. It's probably attributed to the conservative patterns in Indian culture. Kudos Mr Reddy and Chidambaram.