Since this is sorta off topic,  I won't respond to each of your observations.

I would however caution you to look closely at what you are minimizing as the "subprime" issue.

It may be instructive to you personally to take note of the number of senior executives of Americas top financial institutions who have been shoved out with their golden parachutes as a result of minimizing the exposure of their firms to this "minor" crisis. 

They were, of course, amongst the cream of those smart bankers you are referring to....