Sink or bail them out?

The current economic situation has governments reeling to figure out how to "calm the rough waters" of the economic upheavals. Financial institutions--banks, insurance companies and pension funds--are failing, major corporations--including the "Big 3 car makers" (Chrysler, Ford and GM)--are also searching for a way out of their financial morass. And, then, there's the country of Iceland which was on the brink of bankruptcy due to the failure of its larger banks until the international community and the IMF came to its rescue. Some have suggested parallels to The Great Depression.

To extend the nautical metaphor, what's to be done with the "sinking ship"? Do we save those on board (everyone, only the passengers, the crew, the captain, or some combination?), bail out the water (so it continues to float and continue on its journey as before?) or, let it sink (writing off the 'asset' and starting fresh)?

Somehow, the fact that the people most responsible for the current state of affairs, the government officials who pushed for massive deregulation, money mangers (CEO's and other industry leaders) who engaged in risky behavior--lending to the truly credit unworthy, sub-prime lenders, and decision-makers (and those with influence) who refused to engage in prudent thinking and behavior that the "housing bubble" was just that a bubble and an infinite trend -- should profit from their irresponsible behavior irks me. Yes, the companies in trouble are frequently large and their failure could snowball, however, everyone needs to be held accountable for their behavior. Executive pay should reflect actual results (as opposed to stock prices and short-term profits), not just small companies,who frequently lack the lobbying power of the large and multinational corporations, should be 'allowed' (forced) to declare bankruptcy.

It's truly ironic that the free enterprise, "objectivism" (a la Ayn Rand) of the George W Bush administration has become the lead voice for bailing out the large financial institutions -- pure socialism at its finest. Then, of course, GWB needs to continue protecting and promoting the interests of his friends (or those of Dick Cheney).

Let's protect the interests of the more innocent--since no one is completely innocent or without blame/responsibility--segments of the affected population. The investors, especially those too old to wait around to recoup their "losses", the workers being laid off due to the needed staff cuts retrenchments. Let the CEO's and their ilk face the proverbial drummer.

Let the boats sink while rescuing the passengers and lowly crew.