Moral Hazard

MORAL HAZARD….Atrios takes a look at the Fed’s latest bailout plan and says:

I don’t claim to be an expert on the mysterious world of high finance, but it’s hard not to perceive that this latest Fed action is rewarding bad behavior.

Of course it is. When it comes to rescuing large financial institutions run by rich people, the party line is that we need to put our emotions on hold, save the system, and not get caught up with making petty moral judgments. Moral judgments are only appropriate when it’s some working class schmoe who’s done something either stupid or unlucky. Understood?