The $700 billion bail-out of the US banks and their ‘toxic loans’ is not exactly universally acclaimed:
For years now, they’ve told us that we can’t afford—that the government providing healthcare to all people is just unimaginable; it can’t be done. We don’t have the money to rebuild our infrastructure. We don’t have the money to wipe out poverty. We can’t do it. But all of a sudden, yeah, we do have $700 billion for a bailout of Wall Street.
The idea—we didn’t cover insurance … for four million kids, because Bush vetoed it and said $7 billion was too much to spend [on] health insurance, for four million kids, but now they can throw $700 billion at these banks, and they say we can’t even have hearings about it.
The problem of ‘moral hazard’ is even greater with this proposed package than just a prop-up loan as given to Goldmans and Morgans, or the sharply targeted buyout of AIG ($85b loan at 11% p.a. for 80% control of a company with assets close to $1 trillion), . The idea that the government take responsibility for the worst of the excess just promises that this will happen again, in one form or another.