Moral Hazard - would you do the right thing?
This is in reference to bankers. If they make risky inappropriate bets and especially are they are considered to big to fail, then the government will rush in to save them if they become insolvent.
But if their risky bets work out, they consider themselves heroes, pay themselves and their shareholders big bonuses.
So there is no downside to their mistakes and total upside for their wins.
There is no difference between what is right and what is wrong - a free for all.
This is complicated by the interweaving of government and corporations, especially banks and the military industrial complex. Often senior bureaucrats and politicians end up working within the government and then for the corporations, backslapping and congratulating themselves every step of the way.
Naturally this can go on for quite a while - until the whole thing unwinds.
God bless America.
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