No doubt about it. Step 1 through 4 you describe is exactly what was before that got us to today.
Last time Step 1 was Greenspan after 9/11. Roll out the money punch bowl (and interest rates to practically zero thereafter). No wonder people have to hate the Federal Reserve system and the govt' for not enforcing the simplist most fundamental regulations.
I just found out my wife's parents took a hit on their annuity with AIG.
Incidentally: I'm long and behind on AIG and boat load of bank stocks (ie I'm not a shorter). These bank CEOs and AIG filth mangagment should be in jail.