As most of you know, a moral hazard happens when a government policy encourages and rewards behavior it wants to prevent.

Bailing out banks, shareholders, or depositors moves them off the hook for failing to do their due diligence and makes failure like SBV more probable in the future.

And when Biden tries to assure us that “taxpayers won’t pay for this,” of course, they will. Who else is there to pay for this? The man on the moon?