We can’t afford to forget now that the single biggest legacy of the Iraq war at home was to codify the illusion that Americans can have it all at no cost. We willed ourselves to believe Paul Wolfowitz when he made the absurd prediction that Iraq’s oil wealth would foot America’s post-invasion bills. We were delighted to accept tax cuts, borrow other countries’ money, and run up the federal deficit long after the lure of a self-financing war was unmasked as a hoax. The cultural synergy between the heedless irresponsibility we practiced in Iraq and our economic collapse at home could not be more naked. The housing bubble, inflated by no-money-down mortgage holders on Main Street and high-risk gamblers on Wall Street, was fueled by the same greedy disregard for the laws of fiscal gravity that governed the fight-now-pay-later war. (Source)
Deficits don't matter for Republicans except when Democratss are in power. They don't matter if funds are being spent to benefit cronies in defense or oil. They only matter when the "little people' are benefiting, even if only marginally. Moral hazard is only for the peonage.