Friday, October 03, 2008

Re: Irresponsibility and morality regarding the bail-out

We are so fucking conditioned to the dictates of corporate capitalism. Whenever I talk about this scam of a bail-out - this Robin Hood in reverse - I tend to get the same vague commentary: The first thing said is usually in regard to the moral hazard of bailing out homeowners who over-leveraged themselves.

Bad consumers! Shame, shame on you! Look at this mess!

Ask yourself: How does it differ from the moral hazard of bailing out the financial institutions that securitized questionable loans, insured them, and sold them as investment grade securities? This is not about irresponsible homeowners, campers. It's about an economic system that is inherently immoral from jump street; a system that encourages corruption (just "business as usual", right?); a system that seems to be in permanent crisis mode.

This is about restructuring a proven failure.


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