The Moral hazard economy

Deskripsi

The Obama administration and the Federal Reserve authorities - along with their counterparts around the world - are doing their utmost to thaw the terrible credit freeze that took hold in the fall of 2008. That governments have had to take these steps is a sorry commentary on how badly the housing and derivatives bubbles deformed the economy and the global financial system. Although interventions in the private sector have in all likelihood prevented an immediate meltdown, they have profoundly transformed the economic landscape. How disastrous the consequences will be depends on whether our appetite for risk has been increased by the bailouts or reduced by the meltdown..Printed journal