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posts about #moralhazard more →
The Only Thing We Have to Fear is the Fear of 'Moral Hazard'
| posts about #moralhazard more → |
The Only Thing We Have to Fear is the Fear of 'Moral Hazard' |
02/24/09
Don't need to waste breath on a televised stock exchange weasel who has been enabling the whole charade.
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02/24/09
But maybe that's why I'm not a priest or rabbi.
02/24/09
02/24/09
Sounds like it, but that definition is incomplete. Moral hazard encourages risks because there is no risk of loss; heads you win, tails you win, but with tails, someone has to pay for your win. Anybody wants to play that game--and will. There are other ways to encourage risk that preserve actual risk. Lower capital gains costs, for example. Change accounting rules that require institutions to price assets as if they were going to sell them all today.
02/24/09
02/24/09
Well, not EXACTLY. I'm all for cut and dry measures of performance and all that, but a lot of investments really fluctuate in value, and as such you need to be able to present a statement of value for a singular moment in time (be it monthly, quarterly, or annually).
It's a hot topic in the accounting field, and mark to market really is the scourge of the sinking-ship CEO, who always blame their financial situation on SEC and FASB guidelines.
02/24/09
This argument seems to assume that we need credit and investing and to bother ourselves with the details of taxes. Can't seem to get out of this mindset, can we.
02/24/09
[econ161.berkeley.edu]
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