> Banks that have an implicit (or explicit) guarantee of bailout are making rational decisions about risk, since they can offload it on the taxpayer. Agreed. F

> Banks that have an implicit (or explicit) guarantee of bailout are making rational decisions about risk, since they can offload it on the taxpayer. Agreed. From their perspective it's a sound and rational play - a better term would be to say we can't rely on banks to make moral or ethical decisions from a society perspective