Todd Suomela's Library tagged moral-hazard →  View Popular, Search in Google

wall-street protest activism fairness justice law corruption cheating moral-hazard

The change of control clauses in executive contracts are part and parcel of the “bribe the pirate” pattern seen in publicly traded companies. Given the desire of shareholders to have executives to take large amounts of risk, since that shareholders can diversify away most of that, you do two things: let them share the upside, remove the down side.

business ethics moral-hazard morality piracy corporation principal-agent incentives

"I changed a word or two in there, but that word "envious" in the final question is holy writ. The perverse irony, of course, is that you're most likely to hear that word tossed about nowadays by exactly the sort of greedy, grumbling sorts described in the parable above. These are warped, stunted, soulless creatures who lie awake at night worrying that somehow, somewhere, some poor person might be catching a break that they didn't 100-percent deserve. Some poor family might be getting extra food stamps. Some poor mother might be using WIC to get the good cheese. Some family might not get kicked out of their home and onto the street when really they should have been responsible enough not to trust the professional realtors and bankers who assured them they could afford that house."

religion money ethics parables poverty moral-hazard

in list: Economic Crisis

economics crisis savings debt bailout moral-hazard

in list: Economic Crisis

Points to some of the holes in the moral-hazard argument against bailouts.

psychology markets moral-hazard