John B. Taylor: “The Federal Reserve, for its part, keeps interest rates often artificially low, in ways that may mask the true cost…”

The whole idea of bailouts is that people get advantage and that it creates huge risk-taking and huge moral hazard.

You don't increase taxes.

I certainly don't want to--want my grandkids to see the crisis scenario, in which the interest rate on the debt will skyrocket abruptly because investors will no longer have confidence in our government's ability to pay its bills.

It would help prevent bailouts. It would diminish excessive risk-taking.