Friday, January 15, 2010

Economic 101 Series: Moral Hazard

The economy as a whole does what is logical; any player that does not is soon replaced by one that does. The problem is that government rules and regulations can perverse what would normally be considered logical, and then the players are blamed for doing what they should have (which was what they did) based on the context when the house of cards comes tumbling down.

Video embedded below.

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