> (From Barofsky's Report):
>
> The substantial costs of TARP — in money, moral hazard effects on the
> market, and Government credibility — will have been for naught if we do
> nothing to correct the fundamental problems in our financial system and
> end up in a similar or even greater crisis in two, or five, or ten
> years’ time. It is hard to see how any of the fundamental problems in
> the system have been addressed to date.
> So, what say LBO about the report?
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I call on all error theorists to turn to rubbish the sophomoric use of "moral hazard." The economics profession would do well to spend a few years studying what's happened in metaethics; unfortunately the academic/policy wonk dol is not going to come to terms with nihilism any time soon. That'll tie 'em up in knots. And we'll get the next crisis even sooner. Let's be efficient in bringing on monetary doom, ok?
As for government credibility, that's right up there with military intelligence.
Now, what to do about the broken time machine that is money/debt and the rethinking of obligation that cannot appeal to morality or the fiction of political authority.More protection rackets ahead, wear life preservers.