Okay, so we're not supposed to be worrying about moral hazard any more. But that doesn't mean it's less annoying to watch your competitors screw up, get bailed out and scoop your business.
Canadian banking system, following a series of co-ordinated moves by
the world's industrial powers over the weekend to blunt the effects of
the global credit crisis.
Finance Minister Jim Flaherty indicated yesterday he would be willing
to offer more support for Canadian banks in order to ensure they remain
on a level playing field with rivals around the world…
The problem is this: If an Irish or German bank, for example, can issue
debt that is guaranteed by its government, it may have an easier time
raising money than a bank in a country such as Canada, one that doesn't
offer such security.
Similarly, in the current climate of panic, there is a risk that
deposits will begin flowing to regions where they are fully insured by
government coffers.
Worthwhile Canadian Initiative 
We’re not supposed to be worrying about moral hazard anymore?
If the state as a risk-neutral, long-horizon investor can make a positive social return and help thaw private credit markets, then, yes, moral hazard is less of a concern.
But it is never too early to start reflecting on the deep, systemic causes of this crisis such as colonial-era dated first-come, first-serve policies under the larger umbrella of Tragedy of the Commons-prone dogma.