Category Archives: Moral hazard

US Deviating Considerably From Swedish Banking Crisis Best Practices

A good article in tonight’s Financial Times gives useful detail about the Swedish response to its early 1990s banking crisis. As readers may know, Sweden (along with the less touted Norway) is considered to have been particularly effective in mopping up a banking crisis. We and others have observed that the US is engaging in […]

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Guest Post: Moral Hazard Now Biting GM

Submitted by Lune This blog and many other authors have pointed to the large moral hazards that the federal government’s actions have created so far. It was typically expected that these moral hazards would play out in the next cycle of boom/bust, with financial players taking bigger risks for their own gain while expecting public […]

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