9 September 2008 - outsource moral hazard

What do we learn from the regulatory takeover of Fannie Mae and Freddie Mac? That government not only loves to outsource moral hazard, but is also willing to buy it back when the hazard manifests, moaning and rattling its chains. With that in mind, I propose the privatization of the functions of the Internal Revenue Service. With the money the IRS has wasted on bad computer upgrades, the standard corporate efficiency argument should sail through Congress. The only remaining question is, how do I position my slice so that it’s among the ones that is expensively bought back?