moral hazard, the worst thing (economic) mankind has to face.

I agree that moral hazard is the worst thing that the economy has to face.

moral hazard has always been with us in the 20th and 21st century.
Rockfeller's Standard Oil's hostile M&A and market monopoly was perhaps the first famous act of moral hazard that effected the econmoy and the stock market.
Sherman Act of 1890 was the groundstone for Fair Trade Comittee that enforced laws to rightfully organize the market harmed by Standard Oil and US Steel. Clayton Act of 1910s followed and US has been fighting against moral hazard ever since, FTC's power most enhanced when it decided to split AT&T, the largest company in the world for series of the years at the decision time, decades ago.

Enron accounting fraud 2001 pulled Enron down from the most admired company for many consecutive years to bankrupcy. Enron's moral hazard was heavily punished, sentencing ones behind the fraud more than 100 years in the prison. Mass media followed the criticism and the whole country got together to punish and self-reflect the moral hazard.

Recent moral hazard happened two years ago. Subprime Mortgage Crisis that effected the whole world economy for once and for all. For instance, grades in universities in Korea became important only a few years ago, when the air in society changed and jobless problem became big due to the economy depression that started from US. It happened to directly affect me too. I used to dream of becoming an investment banker, but the crisis made me reconsider the situation.

consider NBC's In America Today's Lehman brothers, the next Enron
link: http://www.youtube.com/watch?v=9IRqwhxlarU

Bankers and Investors behind the derivative products knew that something wasn't right and should be stopped. However, they chose not to and started sending hot potato to other financial firms continuosly making derivative products out of credit that did not exist. Insurance companies, IBs, commercial banks, consulting firms, securities companies, all did not stop to rightfully admit that they cannot gain profit from nothing. Instead, they just took a part of the festival and thought that bigger it got, the harder it would be to be destroyed. Amazing moral hazard. Worldclass moral hazard.

Largest US bank, bank of America might've gone bankrupt if it hadn't been for public fund that is of course, the taxes of US citizen.

Question.
When the profit's made, stockholders share the profit. When loss is severe, public fund is rent to cover the loss. The proletarian class is helping the loss of the leisure class. The gap between the rich and poor is increasing to the level never seen before, but why aren't the rich noble enough to accept the consequences of their choice? Is it not a giantic moral hazard? What's wrong with our system?

The diffence between Enron and Subprime is that in Enron, moral hazard was that of only a few, but in subprime, everyone took a part in the big fraud. Everyone could not be punished and US government had to formulate trillion dollar worth of fund to stop the country from going moratorium.

Subprime was not an accident. One of the biggest crime that was commited to the 'world' citizen.