Adverse Selection and Moral Hazard in Economics

i swear i'm saying to myself with this commentator, this guyis a standford professor. He's got to know better than this. We're chasing all this money we're not going to get anyway. Why are we chasing it? If you would have left this up the banks instead of the government, the banks, joe, wouldn't be lending out loans to people they know aren't going to pay back. Hell no. The reason thei'r buying loan packages and subsidizing loans is because it's not their money. It's taxpayer money. This creates all kinds of things like adverse selection, too. Here'sa great wall street journal, peace yesterday. A makes