Well, he wrote "If moral hazard is to mean anything then the separation between those taking the risks and those getting the rewards has to be removed. In addition law breaking has to be punished at the personal, not institutional level. Firms don't break laws, people do."

So as I read it, it's the misapplication that is the point--so, if I've got this right (big if there! ;) if one looks at the concept "moral hazard" one discovers that the hazard is of being ripped off by those with more power; and companies may have power, but it is only such that individuals can benefit--with no humans left, the companies could get by on their own, with that dog-deer-humans-dancing-falling-over- animal they've built that Loefing posted--those will be their pets--the ones that built their masters--

So--I see it (robert's diary) as an attempt to deconstruct the concept such that its key elements are clear, and then look at how they can be put together--so faults are with the construction or the deconstruction (might be destruction either way--);

I'm interested in the (de)construction, it makes sense at times to stop and have a look at something, carefully work out the various parts, how they interact.

So if the theme is moral hazard, then yeah, you have to be responsible for your mistakes.

But as that tends to go very heavy on the population--no traffic lights, no glasses, no--

Why no glasses?  Because the concept of being made to pay for your every last mistake is biblical in its judgements--ye have all sinned!  Rather, those in power should simply and every day face the risk of dealing--unarmed, unprotected by any coteries, retinues, armies, militias, or other forms of armour--with the average person--maybe me or you or Robert--such that we personally can hold them to account via the laws of the land--there go those pigs--

Coz lawyers protect you from moral hazard--and they all work for the rich because money also protects you from moral hazard, as does a small milita--unless someone else turns up with better lawyers, more money, and a bigger militia.

Whereas, social structures that teach and practice best practice--praxis--should generate best practice, which can then improve and a virtuouso spiral riseth.

Would be how I'd put it, which is why I don't comment much in these kinds of diaries--all terms (for me) are attempts to nail down water.  Or wood, or rock, or plastic, so sometimes nails are good--they fix things into position, with precision, and the sound is whack whack whack,

I dunno....I think the idea in robert's diaries is to move a step back from the he said/she said and make sure we're all in agreement about what the terms we're using mean, so he sets up his stall and other viewpoints can set up theirs in the comments--maybe I got it all wrong--probably!

Me, I always bang my fingers when using heavy hammers, and if there are rocks, stones, or other sharp and heavy objects I bang into them--

Heh!  Nanne!  I hope you don't mind me going tangential below your comment, and robert, I'm sure I got it all wrong, but I hope you both like these:

Don't fight forces, use them R. Buckminster Fuller.