Kudos to Nicki Kurokawa, a former Cato employee, for this short but substantive video explaining “moral hazard.” She notes that government-subsidized risk played a pernicious role in the housing bubble and financial crisis, and warns that “too big to fail” may create similar problems in the future.
Monday, January 11, 2010
Government-Subsidized Risk Is a Bad Idea
Labels:
bailouts,
Fannie Mae,
Financial Crisis,
Freddie Mac,
Moral Hazard
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