At noon on December 9th, Lt Dan Neubauer of Marine Corps Fighter Attack Training Squadron 101, a F/A-18D pilot, after a series of bad decisions all around, made a final bad decision to attempt to make the Miramar runway and crashed into a house killing three members of a family (Young Mi Yoon, who was in her mid-30s; her 2-month-old daughter, Rachel; and her mother, Suk Im Kim). The pilot, on a training mission off CVN-72, the aircraft carrier Abraham Lincoln, ejected after the left engine failed. He was flying on one engine after being forced to shut down the right engine due to an oil leak.

On September 10, 2003, in a session of the House Financial Services Committee, Representative Barney Frank (D. Mass.), in response to concerns about the GSEs Fannie Mae and Freddie Mac, said “I think we see entities that are fundamentally sound financially and withstand some of the disaster scenarios.” On September 25, 2003, in response to the request for additional regulation on Fannie and Freddie, Frank opined “I do think I do not want the same kind of focus on safety and soundness that we have in OCC [Office of the Comptroller of the Currency] and OTS [Office of Thrift Supervision]. I want to roll the dice a little bit more in this situation towards subsidized housing.” Rep. Maxine Waters (D., Calif.), speaking to Housing and Urban Development Secretary Mel Martinez said “Secretary Martinez, if it ain’t broke, why do you want to fix it? Have the GSEs [government-sponsored enterprises] ever missed their housing goals?” Senator Chris Dodd (D. Connecticut), Chairman of the Senate Banking Committee which regulates mortgage lending, has been linked to preferential mortgage terms as a friend of Countrywide CEO Angelo Mozilo.

Countrywide Financial has crashed due to management and regulatory failures. The entire mortgage banking system crashed as a result of bad loans securitized by FNMA and FHLMC. See Fit to Fail.


So we have two crashes. One of an F/A-18D killing a family of four, and one of the entire US financial system and world banking market. What do we observe in the aftermath?

The marines, in court, brought charges and discharged four member of the Corps. The commander of the squadron, its maintenance officer and two others have been relieved of duty. Nine other Marines have received other disciplinary action. The disciplinary action cites deferred maintenance, faulty aircraft-ground communications, and bad decisions. The F/A-18D was flying on a left engine which had been logged with a faulty fuel-low sensor indicator, and rather than perform maintenance flew 146 additional missions. When the right engine was shut down on an oil leak, the left engine ran out of fuel. Poor maintenance decisions contributed to the crash. The pilot was also criticized in the report for failing to use his emergency checklist. While the Lincoln’s controllers advised of a North Island landing, the squadron officers requested the pilot to make for Miramar, a decision which relied on unrealistic assumptions about the aircraft’s condition. Collectively, the duty officer, the operations officer and commanding officer exhibited poor judgment. For all the criticism of the US Military, the US Marine Corp owned up to its mistakes and took decisive corrective action.

The US Congress has yet to own up to its role in the crises and in fact now wants us to believe that it, and more regulatory agencies, are in fact, the solution. When are we going to see an equivalent acceptance of responsibility? My suggestions:

  1. Rep. Barney Frank, discharged from Congress for gross incompetence and dereliction of duty.
  2. Senator Chris Dodd, discharged from the Senate, for ethics violations, conduct unbecoming, and gross dereliction of duty.
  3. Rep. Maxine Waters, discharged from Congress for incompetence and gross dereliction of duty.
  4. Speaker Nancy Pelosi, discharged from Congress and banned from ever holding a public office, for incompetence and gross dereliction of duty.
  5. Rep. Henry Waxman, discharged for cowardice in the face of the enemy, dereliction of duty, insubordination, and conduct unbecoming.
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