Moral Hazard: The idea that a party behaves differently knowing they will not be held accountable for there actions compared to their behavior if the knew they would have to suffer the consequences of their actions.
If we bail out these people responsibility for this mess we find our selves in there will be no lesson learn and this poor behavior will be seen again.
There MUST be consequences to their actions.
This applies not only to fiscals matters but to vandals, thiefs, con artists, and liars as well.
Localy we have people "tagging" or spray painting churches and grave sites of vetrens. When caught they are put on probation, warned and told not to do it again. There is no punnishment. As there is no punnishment the vandals repeat their crime over and over again. If they where punished with jail time they would at least be not able to perferm such acts while serving their sentance.
The same applies to bad roofers, plumers, and bankers.
No punnishment, actions repeated.
As long as these actions by the banking conmunity are forgiven with bailout after bailout no leason will be learned. No course of action will be altered. Responibilty will be evaded.
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