Saturday, July 19, 2008

On Moral Hazards

Excellent balanced reporting explaining the economics of moral hazards via PBS News Hour (with streaming video):

Bailout of Mortgage Firms Could Set Risky Precedent

As the nation's housing woes continue, the government announced a plan this week to shore up mortgage-giants Fannie Mae and Freddie Mac. Paul Solman weighs the role of government intervention and the possible ramifications of rewarding risky financial behaviors.


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