...which is kind of a strange thing, since you know they will re-institute it at the sign of trouble, again.
Moral hazard is alive and well in the money market industry.
"As the risk of catastrophic failure of the financial system has receded, the need for some of the emergency programs put in place during the most acute phase of the crisis has receded as well," said Treasury Secretary Tim Geithner. "The Guarantee Program for Money Market Funds served its purpose of adding stability to the money market mutual fund industry during market disruptions last fall and ultimately delivered a healthy return to taxpayers."
A healthy return to socialism? A healthy return to policies of government intervention? A healthy return to a moral hazard-strewn economy? What kind of 'healthy return' did taxpayers get on this one?
ReplyDeleteAnd what would an 'unhealthy' return have looked like?
"Congratulations, Mr. Taxpayer, your wife the Treasury Secretary gave birth to a healthy baby MMF Guarantee! Nurse, record the weight at five trillion pounds, three-hundred billion ounces."