Yea. It seems to mean something like that it's immoral for poor people and debtors not to pay interest because of high risks in loans to them, but that it's moral for the rich and creditors to be insured against the very same risk they take in lending to the poor ?
Charles >>> raghu <[EMAIL PROTECTED]> 11/28/2007 1:25 PM >>> Isn't moral hazard just econospeak for a familiar phenomenon: socialized risk and privatized profit? -raghu. On Nov 28, 2007 7:02 AM, Charles Brown <[EMAIL PROTECTED]> wrote: > Moral hazard > From Wikipedia, the free encyclopedia > > Moral hazard is the prospect that a party insulated from risk may > behave differently, for example, that an insured party's behaviour will > be more risky than it would without the insurance. Moral hazard arises > because an individual or institution does not bear the full consequences > of its actions, and therefore has a tendency to act less carefully than > it otherwise would, leaving another party to bear some responsibility > for the consequences of those actions. >
