In today's Wall Street Journal, Gasparino shows that the history of the Fed subsidizing risk-taking by Wall Street Financiers goes all the way back to the 80s. The "moral hazard" was created by the government. This behavior is not partisan - both parties are responsible. While most folks are angry at the greed and stupidity of Wall Street Financiers, the real responsibility lies in the fact that these same financiers knew the government would bail them out if / when they got into trouble with mortgage-backed securities. It's not socialism, it's not communism - I need a new 'ism'. How about FUBARism?
How is FUBARism defined? It's simple - FUBARism exists when you privatize the profit and socialize the risk. As my son says, "Heads we win, tails the government bails us out." What other name for this type of economic disaster is there? Please offer an alternative to FUBARism.
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