[somedudetbh]

> unhedged duration risk, nor the moral hazard created by the bailout

Just making sure I understand your point here, are you just against "banking"? Unhedged duration risk w/ LOLR backup is essentially "the banking business".

What's the moral hazard? The equity is wiped out, most of the debtors are wiped out.

The only moral hazard I see is we've disincentivized individual depositors from assessing the financial strength of their banks. To me, this is a good thing. I hope we can bring similar moral hazards to choosing a plane to fly on, bridge to cross, building to enter, restaurant to eat in, hospital to go to, etc.

[bagacrap]

Other banks had less duration risk and some used hedges. No bank is going to profit from this particular environment but it's possible to manage assets such that the entire business doesn't implode.

[landemva]

While it is possible to manage for safety, regulators did not enforce that.