> The example that really bugs me is federally backed flood insurance. People build homes in places that aren't safe, and then taxpayers bail them out. Moral hazard.

Hah. So, I live in the Netherlands. Do you think that everybody who lives here should move to Belgium or Germany then, given the flooding hazard here? Are the Delta Works projects a huge waste of tax payer's money? Or is it different when your entire country is at flood risk?