19 September, 2008

Moral Hazard

Today is a 'good' day for the markets, but a bad one for capitalism in general. Apparently, we taxpayers are bailing out the entire financial system. What does this mean? The same mistakes in mortgage finance and credit will be repeated. This is akin to a short-term fix for a drug user, but no re-hab. Shame on the government. As Jim Rogers often says of both Democrats and Republicans, "a pox on both their houses."