To date, I haven’t written or otherwise commented about the issue of Moral Hazard.
Perhaps the main reason is that I am afraid if I start writing about it, I may never stop…
Needless to say, the issue of Moral Hazard and its implications are massive, and just seems to grow with time. It seems as if the issue has taken a “back seat” for quite a while now, and, paradoxically, seems to have become even less of an issue, policy-wise, since The Financial / Economic Crisis began.
The following is an interview with FDIC Chair Sheila Bair which discusses the Moral Hazard topic and related issues:
SPX at 921.23 as this post is written