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>Also, if the damage to the economy would be greater than the taxpayer loss of the bail-outs, they still make sense This is short-term thinking; it gets you ou
by fnordfnordfnord 12y ago
>Also, if the damage to the economy would be greater than the taxpayer loss of the bail-outs, they still make sense
This is short-term thinking; it gets you out of the mess you're in today, but it encourages more of the behavior that caused the mess to begin with.
- mrec 12y agoExactly. That was a perfect textbook example of moral hazard. http://en.wikipedia.org/wiki/Moral_hazard http://en.wikipedia.org/wiki/Moral_hazard