Striving to eliminate the risk of occasional market blips risks eliminating the space within which creative entrepreneurs function. Think of a child so swaddled in protective gear that they cannot even play. Put another way, there is both an economic and ethical case to be made for a limited social safety net. Attempting to drape a safety net under the entire economy, however, turns the federal government into an insurer of the entire economy and, as such, carries a serious moral hazard problem.

So what does Obama propose?