Quote:
Originally Posted by SeattleUte
They've put "billions" in? You don't say. $700 billion? The article says at the end that Europe's losses are much less severe than the U.S.'s, perhaps as low as $75 billion, and one thing no one is happy about is that worldwide this is a mess created by American institutions. The Germans claim they saw it coming, and we rejected their call for tougher oversight. Even the UK is telling us to shove it, which is something. The cul-de-sac quotation refers to EU regulations that would preclude a bail out.
I don't blame them. I'm not proud of these financial institutions that fell prey to the moral hazard of short term gains and riches for their principals just for making loans regardless of due dilligence.
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Now I really know you don't believe what you're writing. Why would any good Torrey give a f' what the Germans think about how we make or lose our money.
And you need to bust out your Friedman again, because the moral hazard of this crisis has nothing to do with short vs. long term profits - it's all about risk being divorced from the lender.