Moral Hazard Common Sense: 1. Lend freely and massively to businesses, but understand this de facto public insurance policy has a cost. Corporate tax rates must rise from 21%, going forward. 2. Equity grants, only if necessary, must dilute/eliminate existing owners.

(2) 3. If the public bails-out the right side of a financial institution’s balance sheet, it should expect payback from the left side. Consumer interest rates (credit cards, etc,) should be capped at 10-15% above Fed Funds.

(3) 4. End deductibility of corporate interest. Promote equity as a cushion, not debt as a trigger. 5. Carried-interest taxation is an abomination, and everyone knows it. End it now. 6. Insiders may not sell stock while their corporations have announced buyback plans in place.

(4) I don’t think these common sense proposals are as radical as the burden that the US Taxpayer has been asked to shoulder twice in the past twelve years, without his/her consent. The insured should pay proper premiums going forward.