{"id":143,"date":"2009-09-15T22:32:08","date_gmt":"2009-09-16T02:32:08","guid":{"rendered":"http:\/\/zzzptm.com\/wordpress\/?p=143"},"modified":"2009-09-15T22:32:59","modified_gmt":"2009-09-16T02:32:59","slug":"the-hazards-of-moral-hazard","status":"publish","type":"post","link":"https:\/\/zzzptm.com\/wordpress\/?p=143","title":{"rendered":"The Hazards of Moral Hazard"},"content":{"rendered":"<p><a href=\"http:\/\/www.washingtonpost.com\/wp-dyn\/content\/article\/2009\/09\/15\/AR2009091500943.html\">Great article in the Washington Post about moral hazard<\/a> on the anniversary of the collapse of Lehman Brothers. Basically, the government said it wouldn&#8217;t back up Lehman and when it didn&#8217;t, the collateral damage to the economy was so massive that the government came back, begging for forgiveness, and promise no more Lehmans.<\/p>\n<p>The result? Banks could get riskier than ever. Read the article and more about what moral hazard is on the ol&#8217; Wikipedia, and then suggest what you think the government should do. If it lets banks fail, we could have massive and deep recessions. If it doesn&#8217;t, then they&#8217;ll carry on with the bubble party because they know there&#8217;s a sugar daddy waiting to give them a bailout, no matter what.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Great article in the Washington Post about moral hazard on the anniversary of the collapse of Lehman Brothers. Basically, the government said it wouldn&#8217;t back up Lehman and when it didn&#8217;t, the collateral damage to the economy was so massive that the government came back, begging for forgiveness, and promise no more Lehmans. The result? [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-143","post","type-post","status-publish","format-standard","hentry","category-economics"],"_links":{"self":[{"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts\/143","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=143"}],"version-history":[{"count":3,"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts\/143\/revisions"}],"predecessor-version":[{"id":146,"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts\/143\/revisions\/146"}],"wp:attachment":[{"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=143"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=143"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=143"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}