Moral Hazard

What is Moral Hazard?


1.

In helping to correct a problem which originated in past poor moral judgments, creating incentives for the same problem to repeat in the future without addressing the original poor moral judgments. Since there is an expectation that one was helped once, one will be helped again.

Giving money to banks which do not reform their mortgage lending practices creates a moral hazard

See risk, consequences, precedent, insurance, compassion


1

Random Words:

1. mad, angry or displeased Thats got me vexed 2. The emotion you feel after you have just been happy slapped by some chav whilst on tub..
1. straight pussy homo ass SNITCH. see also police. "yo look at that g unit soldier i herd he runnin with the police" See g uni..
1. Its a leg stretch that is used before strenous exercises. Involves crossing one leg over your other leg and reeling your hands back, lif..