[anamax]

> In Australia we have a strict financial regulation regime, arguably too strict in some cases, but we didn't have the bubble in real estate prices that the US did. "No doc" and "low doc" lending never reached the point of collapsing the market.

The "no doc" and "low doc" lending was "encouraged" by US govt regulation, specifically "if you're not loaning enough money to {the disadvantaged}, we're going to shut you down". Meanwhile, the "govt sponsored enterprises" that ran the secondary market for mortgages were buying portfolios of crap and lying about it. The latter meant that no one knew how much crap was in the market.

> Combine this with Federal government bailouts and investment bankers seem to act with complete impunity with regards to risk.

Of course they're going to bail out their buddies, future employers, and campaign funders (I'm talking about Obama here).

> Much like a law firm, the partners are personally liable for losses.

Partners at major law firms are NOT personally liable. They've all moved to LLPs and the like.