Failure in capitalism is worth an executive bonus

The history of financial disasters is littered with bubbles that burst. Some really baubly bubbles were the Tulip Mania of 1636, the Mississippi Bubble of 1720 and the South Sea Bubble of the same period.
Recently, economists assured us they’d fixed the problems of boom and bust cycles. “It would never happen again”, until of course the great stock market boom of the 1990s, which ultimately led to the dot-com bubble, the collapse of Enron and Worldcom, and the exposure of corruption in all of the economic machinations.
“It will never happen again”, they assured us once more. Until of course the great Bush bubble was pricked last year. This time it wasn't a bubble, of course; its now called "The subprime fallout"
So how did it happen?
Spectator magazine gives a series of definitions of the chicanery that went on under the noses of economists, called “Cows, a cheerful summary”. Original author unknown, buts it’s a variation on old lessons.

Socialism:
You have two cows. The state nationises one, and gives it to your neighbour.

Communism.
You have two cows . The state takes both and gives you some milk.

Fascism:
You have two cows , the state takes both and sells you some milk.

Traditional capitalism:
You have two cows. You sell one, buy a bull. Your herd multiplies, and the economy grows. You sell the herd and retire on the income.

Lehman Brothers capitalism:
You have two cows. You sell three of them to your publicly listed company, using letters of credit opened by your bother in law at bear Stearns, then execute a debt/equity swap with an associated general offer, so that you get all four cows back, with a tax exemption for five cows. The milk rights of the six cows are transferred through an intermediary to a Cayman island company secretly owned by the majority shareholder who sells the rights to all seven cows to your listed company. The annual report says the company owns eight cows, with an option on one more. You sell one cow to buy a new President of the United States, leaving you with nine cows. The public then buys your bull.