but they're still actual human beings
Who take money from other human being and promise to pay them dividends at some future time (that's what a stock is -- a right to vote in an entity which promises but does not guarantee future dividends). And that money which they take from those human beings has been taxed at least once (and in many case multiple times).
bankruptcy scales very well, actual value moves to other companies, very simple
Not past a certain point. At a certain point, a billion dollars tomorrow is worth less than 100 million dollars today. Simply because once you don't pay the 100 million today, you don't exist at all anymore. In banking, contracts are structured on multiple conditions (legs). If any of the legs doesn't make a payment, the whole contract is worthless. There was one fund which went bankrupt (CIT I think) a few months after the bail out. The only reason it didn't cause ripples is that everyone was preparing for their bankruptcy months in advance. So the logistics for it were in place when it actually happened.
So you keep saying it's *all* the government's fault. That's just ridiculous
Why? They are the only party who didn't play the part that they are supposed to play in the the whole system. Banks structured debt obligations and lent money around. Government was supposed to either cut back the supply of money or liquidate a bankrupt bank in time for the creditors to survive. They weren't able to do that. So instead they handed the creditors a blank check.
But the the logistics are straight-forward, even for large bankruptcies.
Nonsense. It takes months to do a simple foreclosure. A bank the size of Lehman would enter into BILLIONS of obligations every day. It's not even possible to tally their positions at any one time without massive programming endeavor. If someone owe Lehman 50 dollars two weeks from now and Lehman owes them 100 dollars two hours from now, do they get paid or does the money go to those whom Lehman owes 70 dollars 2 days from now? Time and trust is the only real commodity banks trade. Bankruptcies of corporations are much much simpler.
And "nothing to do with psychology" - well, I think you missed the point.
No, I didn't miss it. I disagreed with it.
but the rest of the world still wants to know what the hell people were thinking.
You honestly believe the world wants to know what they were thinking more than it wants to know what they were doing?
And personally, I'm fascinated that everyone involved got away with it.
They didn't just get away with it. They won 2 elections in the process. The amount of money stolen through "stimulus" spending dwarves TARP. AND TARP administration, despite TARP having been repaid by the banks, still exists and administers the same amount of money. No one wants to psychoanalyze the politicians who voted for the stimulus spending. Meanwhile, they steal at (literally) 100 times the rate that the banks are even accused of stealing.
and not the ingenuity and well-intensined planning by the few.
Sometimes, it's ingenuity, and sometimes planning. But sometimes it's blind stumbling in the dark. But those are the prophets of progress. It takes the system for the new advances to gain wide adaptation. I pretty much covered this here http://slashdot.org/~superwiz/journal/169837 5 years ago. Pardon the typos.
The problem is that in any system, regardless of the incentives for actions that benefit everyone, the psychopaths will always look for other ways to gain only for themselves.
I am not sure I see this as a problem though. You are meant to try to gain advantage when you on a job. Otherwise, it's a dead end job. Progress happens because people find subversive ways to work inside the system. The system either gets patched to prevent the problem from happening again or it recognizes it as the new and better way of doing things. Creative destruction is there by design. I am saying that it has not been demonstrated that it is a disability. Once again, computers have NO empathy. And yet, in many case, they make great bankers.
"A car is just a big purse on wheels." -- Johanna Reynolds