Moral Hazard – so we should send the world into financial collapse, destroy 30 years of economic growth and put 10s of millions of people into poverty to prove the point that financial markets are dangerous?
Are you also in favor of not providing medical treatment to children who hurt themselves while playing?
The people who will end up on the streets won’t be the bankers who pissed away their companies’ equity and caused the crisis. I’m sure the millions who will be wiped out have learned their lesson: Businessmen, Financial Professionals can’t be trusted, don’t know what they are doing and are responsible for putting people out on the street.
It was the Laissez Faire, let the markets regulate themselves, approach you seem to be promoting that is the lesson here. Markets may provide for low cost transactions and financial allocation but they don’t work for society’s benefit. Government regulation and intervention in markets is the way to help steer it more to the needs of the people who make it up.