Monday, November 7, 2011


"If the financiers whose over leverage set the stage for the disaster emerge wealthier than ever and even more confident that the government will bail them out, you have created an economic, political, and moral disaster.
The disaster is economic in that you have just given incentives to create bigger episodes of moral hazard and bigger financial crises in the future.
The disaster is political because voters will conclude that you are wholly-owned tools of Wall Street.
The disaster is moral because there is no way an outcome that leaves over leveraged financiers still in the game and as wealthy and ever can be just and fair."
J. Bradford DeLong (with my emphasis added) at

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