A gem from George Will

He defines "moral hazard" and points out that one of them is the Federal Reserve's habit of bailing out problem debtors. When you subsidize an activity, as the Fed clearly is doing here, you get more of it, and the Fed is doing this in the worst possible way; by buying mortgage backed securities.

Look for the housing crisis to deepen, and another one to occur in about a decade as another inflationary cycle persuades borrowers to contract risky debts.