Sure, moral hazard's important and always there, and the idea of good government is to do what it has to for survival and still make sure that individual's actions have consequences.
OK that's good government and these days we got bad government, and my money got taxed and given to UAW thugs as a political payoff. At the same time the article Wyatt posted above was talking banks that got borrowed TARP funds --and paid back w/ interest. iirc GM never got TARP funds because we all would've been better off with GM going into Chapter 11. The banking sector has to be heavily regulated for monetary policy and the bond purchases and reserve req'mnt increases was more business as usual.
mho.
Your post isn’t clear to me. What we do know is that TARP wasn’t doled out equally, equitably or to all banks. It was a political solution in which government chose winners and losers. Where are S&Ls or regional banks? The S&Ls disappeared in the last RE crisis and we’re losing regional banks now, why? Big likes big.
That’s bad government and no thank you. All the things that caused the last RE crisis are still in place. I hope they move to end government mortgages and go to a system of last in line mortgage insurance, if at all. Let the market manage the banks and let competition rule. Then consumers will be king.
Too big to fail banks got there via government assistance and welfare. It’s a nonsense position to pretend that they’ve managed this crisis well. They caused it and helped their friends profit from it.