The Moral Hazard of Bailing Out Banks...
When reading a WSJ story with the headline "A Tale of Two Bailouts," my mind began thinking of Dickens and his rather famous opening paragraph for A Tale of Two Cities, the Dickensian tale of the French Revolution, when the unwashed masses rose up in violence against the privileged ruling class. "It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair...." Interesting, how apt that quote remains today.... For Goldman, the Crash has truly been the cause of some very good times . However, for CIT, another TARP recipient, the worst of times are possibly approaching. It is a financial institution that still teeters on the verge of bankruptcy. And it is not yet clear if the feds will bail CIT out. So what does CIT's possible ...