YITBOSGP

Rumors of the Death of Moral Hazard Are Greatly Exaggerated

I think the federal government is unleashing the moral hazard dogs on the free market. I really don't like the way all this is headed... It appears that over $700 Billion (that's $700,000,000,000) is headed to the market to bail out the banks. This is on top of the bailouts that have already been done. It has been said that Freddie, Frannie, and AIG and were too big to fail. I think they are wrong, I think they were too big to bail out, yet we're doing it anyway.

At the root of the problem is government intervention in the housing market. And yet all that is being talked about is more bailouts and more regulation. We will be creating another (and probably bigger) problem by all this government intervention and bailouts. I have a novel idea... how about we take a look at the regulation we have in place and remove what isn't working as intended before we pile on more regulation. We don't need more regulation and bailouts, we need government to get out of the way.

Let the free markets work, there is no such thing as too big to fail.