Moral hazard Archives - Page 4 of 29

The Good, the Bad, and the Ugly About the Fed’s New Credit Allocation Policy

Why using credit as an economic remedy evenutally does more harm than good.

Wolf Richter: How Ratings Agencies Inflate Credit Ratings to Get Deals & Fees

Haven’t we already seen this movie? Race to the bottom in gaming credit ratings agencies for commercial real estate Collateralized Loan Obligation deals.

Gene Editing Could Help Save the Planet — If Scientists Can Avoid the Typos

Gene editing does not always work as advertised. And that’s before getting to the fact that genetically modified crops have been found to be less robust than native strains.

Carbon Dividends: A Plan for Earth’s Survival that Can Survive U.S. Politics?

Yves here. Carbon dividends are a way to create support for setting a price for carbon. None other than those starry-eyed granola heads at Financial Times called for setting a price for carbon in 2007. Pigovian taxes (ones meant to discourage activity, like transactions taxes) should typically not be seen as revenue generators, since you […]

Everything’s Fine Until Suddenly it Isn’t: How a “Leveraged Loan” Blows Up

A post-mortem of a leveraged loan bust: private equity wins, too bad for everyone holding the bag.

We Need to Stop the Overdiagnosis Disease. Step 1: Remove Vested Interests

Time to stop treating people as targets for disease treatments.

The Delphic Oracle Was Their Davos: A Four-Part Interview With Michael Hudson: Mixed Economies Today, Compared To Those Of Antiquity (Part 2)

How mixed economies have mixed it up over time.

Bank Regulation Can’t Be Heads Banks Win, Tails Taxpayers Lose

At a G20 preparatory meeting, an INET panel analyzed how governments can prevent banks from exploiting taxpayer-funded bailout guarantees. The panelists didn’t mince words.