Paulson, Bernanke, Clinton, Bush, bankers, lenders and anyone involved in the stupidest free market intervention idea I've seen in my lifetime need to pull their heads out of their as*es long enough to read this definition of moral hazard.
We aren't run by monkeys. We're run by dangerously incompetent and corrupt people who need to HEAR THE OUTRAGE of the public (and the lawyers) on this issue.
Moral hazard is the prospect that a party insulated from risk may behave differently, for example, that an insured party's behaviour will be more risky than it would without the insurance.
Moral hazard arises because an individual or institution does not bear the full consequences of its actions, and therefore has a tendency to act less carefully than it otherwise would, leaving another party to bear some responsibility for the consequences of those actions.