[quote=pri_dk] The problem with many of these points are that they are based upon abstract notions and not a practical course of action. It’s too late to fret about moral hazard. We have to act. Moral hazard won’t be a problem moving forward anyway, because lenders are now going to be very careful with their funds for very long time.
[/quote]
What history I know does not support your point here. Moral hazard will resurface with a vengence, but it will take a few years. The United States is rife with examples of poor lending and land booms/busts. Southern Ca has been doing that pretty steadly for the past 30 years or so. We have not learned our lesson, and will not learn our lessons because we have almost no respect for history or ability to learn from it.
