Again a video about the "credit crunch". It shows again an issue that is not found only in the financial markets: Moral Hazard and Inequity.
The problem: Inequity
In many cases it looks like people can deliver a lot of bad quality without any negative consequences. To give an example: In politics and financial markets bosses receive huge amounts of money even if they withdraw from their jobs after they failed or even after being involved into illegal operations. I also have seen such people invited to TV talks as a sample of successful people after some years it seems nobody is remembering any more what they did.
The reason: Negative consequences often take effect late or never.
If illegal operations are involved and hence the matter is taken to court, it often takes many years until a definite judgement is spoken. Then often the punishments seem not adequate from the moral intuition. In other cases where no court and judge is involved negative effects also often show their impact very late so the people often aren't either able to associate the effects with their earlier actions. And the worst thing is that people enriched themselves (more or less legally) they manage to get out of a lot of trouble with the help of their money.
The solution: Courage, increased efficiency of the court and Empathy.
Increasing the efficiency of the court and general state administrative tasks related to it is just one thing. A lot of litigation is never escalated to the court (not only because everybody knows about the poor efficiency), so civil courage - of you and me - as well as education is needed to reduce inequity around us. Respecting the others and considering their needs is an important social skill. Courage and empathy must be within you and spread out by giving a good model/example. Live those properties you would like to find in other people.
Related posts: The big difference of the how, Little respect, Economy performance and empathy, Guarantees and responsibility, The resource problem.