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The major creditors of the fund included Bear Stearns, Merrill Lynch and Lehman Brothers, all of which went on to lend and invest recklessly and, to one degree or another, pay the consequences.
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Although many big tech firms are investing recklessly, most have decent balance-sheets (see article).
What is more, especially in an election year, there is a real possibility of a reaction against the "moral hazard" that may be implicit in government assistance for institutions that invested recklessly.
The G-24 developing countries offered a stinging rebuke to the fund, lecturing it for in effect dropping the ball while banks in the West invested recklessly in subprime mortgages using lending facilities that were off their balance sheets.
Unfortunately, this has often left them with more money than sense as they recklessly invest vast sums into players with a wanton disregard for the consequences, effectively lighting their cigars with rolled up £50 notes like cartoon villains.
* The pros invest aggressively, not recklessly.
On the other hand, the fact that megabailouts have become such an accepted part of the global financial landscape engenders moral hazard, because some members of the electronic herd, figuring they'll be bailed out regardless of what happens to the countries in question, may invest and lend more recklessly than they would otherwise, setting the stage for future crises".
Their mistake was to invest in Greek government bonds and lend recklessly through their branch networks in Greece.With Mr Samaras laid up, Karolos Papoulias, the president, went to Brussels bearing a letter from the three coalition leaders reaffirming Greece's commitment to the terms of the second €130 billion bail-out agreed on in February.
I invest.
Invest, invest, invest.
He found himself investing and giving away money recklessly.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com