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Nurse, Hand Me That Scalpel

We all know that the relationship between credit-ratings agencies and the clients they rate is a corrupt one, reeking of moral hazard. Some of us have even laughed when told that a company is triple-A rated. “How much did they have to pay for that worthless piece of paper?” we’ve joked.

I have an analogy for you. This scandalous situation would be rather like having a doctor being rewarded for finding you ill. Unscrupulous doctors might imagine that you are suffering from all sorts of serious maladies, when in fact all you’ve got is an allergy to cats. Unfortunately, this mild condition only comes to light after many thousands of dollars worth of tests and treatments, paid for by you or by your insurance, i.e. you, or by the taxpayer, i.e. you. That would be a crazy system, wouldn’t it?!

What’s that I hear you say? This is how the medical system works in the US? Now I love America but it does have a hopeless medical structure: America has the highest per capita expenditure on healthcare in the world yet is 70th in level of health. Americans have lived, and died prematurely, with moral hazard for a long time. But as they realize how badly off they are compared with others countries so they are bound to change. Undoubtedly one day the US will adopt a less abused and more efficient and beneficial healthcare system.

One day I hope also that the financial world will end the many examples of moral hazard that permeates this organism. I think we are all fed up with the pin-striped billionaires in smoke-filled rooms making up self-serving regulations, aided and abetted by out-of-touch academics, then setting their 24-year old, rottweiler traders to “rip the faces” off each other, meanwhile simultaneously ripping the faces off unwitting third parties in the process.