Friday, May 14, 2010

Moral Hazard

40 million Americans on food stamps. How d'you like them apples? So we are on the path to recovery which is a good thing as a quarter of all mortgages are underwater. That's about 2.5 trillion dollars "worth" of loans. US debt amounts to a total of 825 trillion they say, a number so huge I don't know what it means. Luckily the Treasury lost count along the way and is unable to tell us how much money we (the taxpayers) have paid out in corporate "loans." Our blood sucking friends in the corporate world continue to take our money and instruct us to rail against our government, the one they have bought. With our money.

There is the question of moral hazard and how to deal with it. I went hunting for a definition of moral hazard and found this: "the lack of any incentive to guard against a risk when you are protected against it." The problem is that our corporate leaders have insulated themselves against losses by using our money and after they used it we didn't ever hold them accountable for their losses and our guarantees. Which begs me to ask: why are Greeks rioting and the Irish protesting and we are doing nothing? We can't even get it together to remember who to blame for this fiasco.

Goldman Sachs, remember them? The investment bankers who became a "proper bank" when it most suited them, so they could take public monies, our money and gamble it away or award to themselves as a bonus, with no risk because we the people are backing them without possibility of repercussions. That would be the American taxpayers who aren't on food stamps, as well as the rest of us who face a bleak future of declining living standards, increasing pollution and no leadership at all. Moral hazard? There is no moral hazard in the US, not real moral hazard because here, no one goes to hell. They just turn up the volume on the television.

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