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Yes, all these bailouts create what is known as a "moral hazard" http://en.wikipedia.org/wiki/Moral_hazard http://en.wikipedia.org/wiki/Moral_hazard
by kqr2 18y ago
Yes, all these bailouts create what is known as a "moral hazard"
http://en.wikipedia.org/wiki/Moral_hazard http://en.wikipedia.org/wiki/Moral_hazard
- tdavis 18y agoPrecisely. Nobody should get bailed, the economy should collapse for a little while and eventually get itself sorted out. The moral should be, "an economy cannot run on practically free credit alone."
- bayleo 18y agoThe attitude with which these companies have been conducting business would seem to indicate that this is hardly the first time we've created moral hazard.