Thursday, September 2, 2010

What Is Moral Hazard?

Just in case you have been wondering what "moral hazard" is, since the term has been in the financial news in abundance lately, here's a great explanation of the concept from Thomas Sowell.

And just in case you don't know who Thomas Sowell is, you can and should read just about everything he has ever written, and everything he will write in the future.  Dr. Sowell is an economist, and his perspectives are always enriching, and I might add, quite correct.  I have never met Dr. Sowell, which is my loss.

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