Moral hazard does occur with companies run by executives arm in arm with union leaders who all feel they are too large, popular and powerful to be toppled, and run the companies down hill for decades.
Or people who structurally must sell giant trucks into high gas demand and high oil prices, and can never profit by selling small, efficient cars.
Or people who lend any amount of money to anyone, insulated from risk, until the entire economy hiccups and reverses.
His entire premise is based on values that lead to bankruptcy, decline and collapse.
You are right, his claims should be rebutted.