The Fed’s decision to flood the system with cheap money will create a textbook case of what’s usually called moral hazard: insulating fund managers from the consequences of their errors will encourage similarly risky bets in the future.
This was wonderfully entertaining simplistic breakdown and yes itunes should totally do this!
I liked these quotes so much I'm taking them but read on its detailed:
"Manias, panics, and crashes are the consequence of an economic environment that cultivates cupidity, chicanery, and rapaciousness rather than a devout belief in the Golden Rule." –
Peter L. Bernstein, Foreword to Manias, Panics, and Crashes (4th ed.) by C. P. Kindleberger
"In a crisis, discount and discount heavily."
Walter Bagehot (1826-1877), British economist
"The job of the Federal Reserve is to take away the punch bowl just when the party starts getting interesting."
William McChesney Martin (1906-1998), Fed Chairman (1951-1970)
Interesting as in total chaos ensues, one an only hope. One can only hope something drastic occurs to limit the population. I read in that book after Everything Is Illuminated, how there are more people alive today than have existed ever in all of history. There aren't enough skulls for everyone to have one, even if we tried. There should at least be that many skulls I would reckon, probably more... to achieve any sort of balance with our environment. Our levels are not sustainable without horrible (and not worth it) consequences, from pollution, to wallmart stampedes that kill people. You know that it gets so much worse, and it will, for its a dangerous path we tread.
Here is the simplified and obvious but why did they do it again? point...
In America, when a business fails, its not the governments concern... ever! Big business deserves death as bad if not worse than any other... Pollute and die auto industry. Loan to fools and perish. Invest poorly and loose. This is the American way. Big daddy government stepping in is overstepping its authority. You want protection from failure, then you should buy insurance. Insurance companies should die too, don't get me wrong, but Jesus Christ they will man, just wait and see what happens next time, we can kill too birds with one stone, just don't bail the fuggas out.