"It's Not Capitalism When…"

From Samizdata we have this quote from Steve Baker, MP:

It’s not capitalism when private individuals stand to gain from their actions but the taxpayer carries the risk.  When risks are socialised and potential profits huge, individuals are bound to be reckless:  why be responsible?  It’s no good agonising about the culture of banking without considering the astronomical moral hazard endemic in the system today.  Of course people who do not have to bear the negative consequences of their actions behave badly.

I don't know, but I wonder if this has anything to do with Barclays Bank paying record fines, as reported in The Telegraph on Wednesday, the 27th?  I can remember how I was proud, back in 1974, to have Barclays, down on the High Street, as my local bank.  Oh well.

Note the terms "moral hazard" and "risks are socialized" (risks are spread out amongst the tax payers) and "not have to bear the negative consequences of their actions".

Regards  —  Cliff