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In the context of this question, my response was about a hypothetical recapitalization of banks if the student loan bubble became untenable.
by ethbro 8y ago
In the context of this question, my response was about a hypothetical recapitalization of banks if the student loan bubble became untenable.
- richardknop 8y agoMy point about moral hazard stays the same and unaddressed.
- ethbro 8y agoIn this hypothetical, as with the recent financial crisis, you're weighing moral hazard against frozen credit markets and failing banks. Sometimes, one must pick the lesser of two evils.