Moral Hazard III

The deal is not done yet, but Bernanke and Paulson (SEC Chairman Cox seems to have no credibility) appear to have sold  Congress on the idea that the total US Financial System was in the throes of completely freezing up. Now taxpayers as Moral Hazard Insurance providers are on the hook for probably a sweet $1TRILLION . And quite a number of US financial players (but not Bear Sterns, Lehman, Merrill Lynch, and AIG shareholders)will have and will continue to profit mightily. And also Scott Free. No short selling, rumor mongering, failure to co-operate on bail-outs, nor working to own accounts too leveraged will be subject to any reprimands. The US Financial System has largely been undone and feasted upon by its own domestic “financial players”. You know the type – railing and lobbying against government regulations and “interference”, espousing huge slash backs in employee “counts” at  acquired organizations meaning the loss of tens of thousands of jobs at each cut, paying taxes at the lowest possible capital gains taxrates or offshoring to completely avoid taxes,  and now collecting the benefits of “heads I win, tails I get a government bailout and amnesty” Moral Hazard for American Financial Freeloaders Insurance policy.  Here is a Fifth of Arsenic and Old Lace to them.