Wall Street investors haven't been creating US jobs.
Now investors are disillusioned about why the bottom is falling out of the financial markets. What they don't understand(or have forgotten) is that for every stock, investment, "entrepreneurial endeavor" etc., there must be consumers at the bottom of the food chain with money to spend, in order to justify(i.e. subsidize) those investments, stocks, "entrepreneurial endeavors". Even if their investments don't directly target "bottom of the food chain" consumers, the consumer demographic they are targeting will most likely make their money from "bottom of the food chain" consumers, or from others who do.
What these Harvard educated financiers don't understand is, an economy is like an ecosystem. When the smallest species(working class) become deprived of resources and begin to perish, the species relying on those species(small business etc.) will become deprived of resources and begin to perish, then the next ones(investors, stock holders etc.), and so on......., until the bottom falls out and everything comes crashing down, just like in '29.
I think many foreclosure victims were desperate(deprived of resources) when they took these sub-prime loans. They seen them as a once-in-a-lifetime opportunity to own, or refinance a home or business. Many were willing to take that once-in-a-lifetime-chance, gambling their financial situation would improve enough to cover the payments, once the regular rates kicked in. It does take two to tango(it not just the lenders' fault)
One point is, if "bottom of the food chain" consumers weren't in such desperate situations, many wouldn't have needed to take these risky loans. Which goes to my fundamental point of, if investors weren't so greedy, investing in foreign companies etc. to make that extra buck, which doesn't create enough US jobs, or put enough back into the domestic consumer economy(fertilizer), "bottom of the food chain" consumers wouldn't have been so desperate to take these risky loans(which should have been illegal in the first place) and this housing foreclosure crisis(which is the root of the overall financial crisis) would've been a lot less likely to materialize as it has.
This problem will have to be fixed from the bottom up. I say invest that $700 billion in alternative energy(green energy alternatives etc.). That would create millions of new US jobs, that can't be outsourced, and improve our domestic consumer economy to the point where it can justify(i.e. subsidize) more "entrepreneurial endeavors".
The Bush administration approach is just more trickle down philosophy. Something like, "Take care of the big lenders and the positive effect from that will trickle down to the little borrower. Obama should have shot down that shit right off the bat. But he does seem to be catching on. Now he needs to more completely explain the flawed philosophy of the Bush bailout plan.