There is a difference between nationalizing the banks and letting them fail.
I think he means nationalize them. In other words getting something in return for all of that tax payer money and making bond holders and/or investors of those companies pay the ENTIRE price.
If bond holders and investors learn that they lose everything if they accept high risk and/or poor advice then they will be more cautious in the future.
Fear of massive losses is a much better regulator of the market than new regulations.
No fear of losses will mean that no amount of regulations is enough.
Future moral hazard has to be avoided.
Claeren.
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