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Guarantees create moral hazard and foster poor lending standards.
We are fragile, sinful and vulnerable — unable to create moral universes on our own.
FROM this viewpoint, government bailouts create moral hazard and therefore might seem a mistake.
A safety net for pensions can create moral hazard by encouraging fund managers to take excessive risks.
But the federal guarantees could create "moral hazard" and simply encourage banks to take on dangerous risk, he acknowledged.
But critics have given warning about the cost and practicality of the proposal; many conservatives say that it would create moral hazard.
Similar(23)
Human nature, sentiment, and sociality itself create morals.
"We believe that human suffering in Africa creates moral responsibilities for people everywhere," he said.
"We're against this particular bank tax because it creates moral hazard".
Another big issue is whether bailing out economies creates moral hazard.
The fear is that bailing out debtors creates moral hazard and eases the pressure for reform.
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