dimelab dimelab: shrinking the gap between talk and action.

sophisticated Economic Donkeys Topic in The Credit Debacle Catalog

Jesse's Café Américain Mon 2009-09-14 12:03 EDT

Moral Hazard and Economic Donkeys

Simon Johnson on moral hazard: the corruption of the capitalist system introduced by a Fed (the Economic Donkeys) that recklessly exercises a function as 'lender of last resort,' in conjunction with a political environment (less sophisticated Economic Donkeys) that can be politely described as being driven by 'regulatory capture' rather than the less euphemistic 'rampant corruption.'

Economic Donkeys; Jesse's Café Américain; moral hazard.