On another blog (CalculatedRisk) one of the replies in the comment section made an astute observation in response to the NYT article:

" Gavshire Hathaway wrote on Thu, 5/14/2009 - 5:08 pm

The forces our reckless leaders are playing with should not be taken lightly. And I'm not just talking about tinkering with our economy, our money supply, asset prices, and other financial constructs. What we need to be concerned about is the blurring of the distinction between right and wrong, and more importantly the incentives for being a hard-working, productive member of society. What is galling to me is that there are no consequences for people who have lived above their means, were overly greedy, or gambled and lost. In a capitalistic society there must be rewards for the prudent and punishment for the imprudent. Safety nets are fine, and necessary to encourage productive investment, but they must not blur the distinction between success and failure. And that is what is happening today. Those that have failed due to recklessness are being made whole, and are quite possibly still in a better position than those who made smart, prudent financial decisions. See banker salaries, homeowners that live rent free for 9-12 months, bailouts for failed companies, government funded pension plans for union employees, I could go on and on and on.

A government that oversteps its bounds in determining winners and losers, particularly to the extent that it defies the moral compass of those governed, is destined to fail spectacularly."

Bad behavior should not be rewarded, and yet it is, over and over.