The Moral Bankruptcy of the left

Megan McArdle has a great article showing the moral bankruptcy of the logic that our leaders seem to be using today.

But second of all, just as there is no way to tax a corporation, there is no way to default on a corporation. Whenever you default, you are taking money from some person: a shareholder, a creditor, an employee who loses their job when the corporation is liquidated.

And to return to the question I asked earlier: what if Felix were defaulting on you? Because he probably is. His mortgage bonds are owned by pension funds, bond funds, and of course, investment companies whose debt is in turn held by bond funds, pension funds, and insurers. If they suffer gigantic losses, they will either leave a bunch of people unprepared for various forms of financial distress, like retirement or a house fire–or the taxpayer, aka you, will bail them out.

via Rand Simberg

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