"common theme of all -ups (Katrina, BP Oil, Economic Crisis, Housing debacle, racism whatever) is government"
So you've been suckered by St Ronnie's conservative propaganda "government is the problem". The only defense against corporate and capitalist predations is the government, as imperfect as it is.
"process of compromise and country first"
Magic Negro has been stupid and naive thinking he could find some compromise with the obstructionist, bad-faith, -all-y'all Repugnants. And the Repugs have done everything they can to deepen and worsen and prolong the economic pain for political gain in November, putting the country "last".
The Dems' fault is repugnant weakness in pursuing something good and humanitarian for the country like health care reform, financial reform, while the Repugs consistently insist on letting the corps over citizens, patients, employees, consumers, the environment through compromising the regulatory function of govt through willful negligence and incompetence, by deregulation (the freer the markets become, the more ed we are).