And so the unravelling of the latest financial bubble gathers pace. Here and in the States failing financial institutions have been backed with taxpayers' money.
I quite understand the decision to make sure depositors don't lose out: you should know that if you put your money into a bank account it won't disappear. However, bailing out risk-taking investors with our money? That's just wrong.
If the value of your investments effectively can't go down, you shouldn't get benefits based on that supposed risk. And the free-marketeers ought to be agreeing, because they invented the phrase "moral hazard". That hazard doesn't just apply to business people, it applies to the politicians who bale them out too.
I quite understand the decision to make sure depositors don't lose out: you should know that if you put your money into a bank account it won't disappear. However, bailing out risk-taking investors with our money? That's just wrong.
If the value of your investments effectively can't go down, you shouldn't get benefits based on that supposed risk. And the free-marketeers ought to be agreeing, because they invented the phrase "moral hazard". That hazard doesn't just apply to business people, it applies to the politicians who bale them out too.
