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To: yard_man who wrote (128590)	10/11/2001 1:32:00 PM
From: pater tenebrarum	Read Replies (3) \| Respond to of 436258

the frequent bail-outs we have seen always involve the creation of additional paper claims, often on the very same assets - as e.g. evidenced by the fact that home-owner's equity has shrunk dramatically concurrent with a big bout of housing inflation. it's a pity that no serious debate on the system as such is taking place in mainstream economics...one would think that a system that is so fragile as to require massive intervention every other year to be kept afloat would invite more critical appraisal. but the system has become an article of faith apparently...and thus moral hazard has been perpetuated. and yet, it is clear that eventually it will have to be reformed...simply because every Ponzi scheme eventually fails. this one is merely bigger than any of its predecessors and has more vested interests attached to it.