Why should anything change? They have learned that they will be “bailed out” if they lose too much.
Simple concept. Federal Government bails out banks and does NOT force them to re-structure nor do they institute new rules or guidelines. Credit never makes it way down to small business and entrepreneurs who CREATE JOBS. Instead, the banks risk the money, going in and out of the market with it, sometimes with success, sometimes with failure. This creates artificial success in the market and when this bubble bursts, to use a quote from JFK to Pierre Salinger during the Cuban Missile Crisis, “Hold your balls”!