I caught this line this morning:
Professor Black says Tim Geithner’s plan includes a secret list of institutions that are too big to fail and that will always be bailed out no matter what. This explicit protection, even if kept secret (keep dreaming), will distort the market and create the worst form of moral hazard: Bank executives will know that no matter how much risk they take, they’ll always be bailed out, and they’ll therefore be encouraged to take crazy risks in the hope of scoring huge short-term gains.
And the video that goes along:
I offer no prediction for when the next shit storm will arrive, but clearly it is coming.
