Thus there is the teaching of wisdom concerning respect for the poor, the importance of generative work, the danger of careless speech, the risk of unpayable debt, the hazard of having the wrong kind of friends.
It's this problem of risk taking with debt that moral hazard is about.
Liability, in law, a broad term including almost every type of duty, obligation, debt, responsibility, or hazard arising by way of contract, tort, or statute.
Short-term foreign-currency debt, combining the hazards of both, is therefore a prime concern.UnpeggedToday the exchange-rate danger, at least, is smaller than before not because currencies are more stable, but because the fragility of systems that merely appear to be stable is better understood.
Will debt forgiveness encourage moral hazard on the part of borrowers?
BEIJING — Some of China's largest companies may pose a systemic risk to the country's banks, a senior banking official said on Thursday, in the latest signal that Beijing is ratcheting up scrutiny of a financial system plagued with hidden debt that poses a hazard to the health of the economy.
The administration, in fact, sees the hazard of debt relief as less dangerous.
The Obama administration, along with housing activists and many economists, says the "moral hazard" of debt relief is less dangerous to the economy than the foreclosures and suffering that will happen if nothing is done.
Others pretend to worry about the moral hazard implications of debt relief, despite the fact that the country's private sector debt has already been written off at EU insistence, and that there are dozens, if not hundreds, of precedents for restructuring the debts of insolvent sovereigns.
Debt forgiveness and the moral hazard question of who deserves to be helped are among the most contentious issues.
