You've GOT to be kidding me!

Builders, Banks Could Get Tax Breaks

Here is the problem with what the American economy has become. After hearing about one too many fairy tales of entering the stock market at the right time, making millions, then getting out before the big bust - every investor now believes they can do it. When the logical course of events shows that they cannot, well, now they have the Super Fed around to save all the... poor helpless investment bankers. Basically, you have financial players purposefully creating bubbles, in hopes of profiting short-term, rather than investing with a more healthy, long-term approach. This strategy works, because even when it doesn't, the big banks have a big ol' government safety net - which creates moral hazard in terms of risk-reward assessment. Mark my words, if this sort of government action is allowed to continue, our booms and busts will continue to get closer and closer together, until the economy fluctuates like the seasons. And with that kind of instability, you can say goodbye to any sort of progress, any gains in our quality of life. With that kind of instability, America will one day be the world's Bear Stearns, and lord knows what country will play the role of JPMorgan (although China is looking increasingly likely...).

Side note: This Slate commentary focuses more on the bad economics of this policy than the bad principles - also a good read.