Which brings us back to the lenders. What is their role, if not to exercise expert judgment? If they cannot independently determine who is credit worthy and who is not, than why do they even exist at all? We might as well leave piles of money around and ask borrowers to self-regulate their appropriate credit limits.
That might actually work better than the way they've been doing it.
But they know they can count on taxpayers to make them whole, thanks to a system that "makes Mr. Dimon no capitalist colossus astride the Isle of Manhattan, but one of the great welfare queens in America."