Just Following Orders

"Moral hazard" in financial systems refers to such things as encouraging risky behavior to recur by bailing out those who take risk and lose.  Here is a new form of it.  David Kotok, chief economist for Cumberland Advisors, a large investment firm, writes a column today ("PPIP:  Heads or Tails?) in "The Big Picture" which describes the Obama-Geithner latest bailout plan (The "PPIP") for the financial community in these summary terms:

 As a money manager for our clients, the Cumberland firm will look at PPIP and may use it on behalf of clients after we have reviewed an official form of an offering document. As a private citizen concerned about my country and its policy direction, I think this reeks and stinks.

I understand his reasoning.  Unfortunately, it is that of an underling and a weasel.  Presumably Mr. Kotok needs a job.  Otherwise he should resign rather than participate in what he knows is a reeking and stinking rip-off of America.

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