Submitted by ubetchaiam on Thu, 08/02/2012 - 8:33pm
Submitted by Sarah on Tue, 09/30/2008 - 12:10pm
Yes, I know the link is to cnn, but even a blind hog ...
bailout transfers enormous wealth from taxpayers to those who knowingly engaged in risky subprime lending. Thus, the bailout encourages companies to take large, imprudent risks and count on getting bailed out by government. This "moral hazard" generates enormous distortions in an economy's allocation of its financial resources.
Read below the fold...
