Here’s your evidence of Moral Hazard!

Just read this in a bullish(to say the least) column on Banks…

Government Back Stop: If the government was going let these banks fail they would have done it already, and they are obviously not. There is a lot of more room for growth now, and the economy is improving significantly.

Sure there may be a double dip recession, and there are a lot of bears that are in denial about the fact that there will be a recovery and growth in the 3rd and 4th quarter of 2009. They have locked themselves into a pattern where all they see are bad things happening.

via 4 Reasons Why Banks Will Keep Getting Stronger.

The guys above are seeing good signs in the fact that people are returning to consumer finance, as well as the above mentioned assumption that the US will never let any bank fail. Perhaps the US government will never let another big bank fail again(or perhaps the US won’t have a choice because it won’t have the money to conduct another big bank bailout), but if people expect the activities encouraged by these sorts of columns to be the basis for solid sustainable growth then welcome back 2008, we hardly knew ye.

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