The next meltdown

The next meltdown
In economic circles, the problem is known as “moral hazard.” Average Americans will call it common sense.
And common sense tells me that, given the nature of the last year’s bailout, moral hazard has been created on an unprecedented scale — setting the system up for a bigger demise somewhere down the road, when the memory of the horrible weeks following Lehman’s bankruptcy is forgotten.........
If we don’t impose such hard rules, expect a repeat of what happened last year.
If history is any guide, that implosion will be bigger and more dangerous than ever before.