Thread: Wackonomics
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Old 11-21-2008, 03:40 PM   #24
alexamenos
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the opposite of wackonomics.

There's a great discussion in this ^^^ on effect of government created moral hazards. Briefly, Schiff says that greed and fear of loss are countervailing forces. People greed for more but the fear of loss makes them risk adverse. The government, however, goes to such great lengths to limit the risk of loss that the fear of loss no longer impedes upon greed -- you're a greedy banker and the government is doing everything it can to make sure you'll never go out of business, what fear of loss do you have? None, you're just an unimpeded greedy banker....something along these lines.
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Last edited by alexamenos; 11-21-2008 at 03:47 PM.
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