In essence, they're perpetrating a fraud by using fake accounting methods to pretend that bad assets are good assets until they can figure out what to do with them.
To my mind, it appears that they are trying to figure out how to deflate a bubble without exploding it...gently.
VERY tricky to do.
Complicated by the rise of the East to challenge us for economic supremacy (while they refuse to transfer to true consumer-based societies (China) or to modernize infrastructure or give up cronyism (India).
Further complicated by the (relatively new) extent of derivatives in forms and amounts unconceived of during the Reagan years; "dark pools" outside of the erstwhile watchful eyes of US regulators; and the knowledge of the ever-present threat of a suicidal "rush to the exits" mere microseconds after a fatal mistake is made.
Add to that, the Marxist Obozo screwing up by nationalizing banks and industries *while* playing favorites to his cronies (Chinese "capitalism" there); and running the nation debt up to the point that the *interest alone* will be greater than Bush's TOTAL deficit.
Yikes.
NO Cheers, unfortunately.