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Why wouldn’t they? You said it yourself, they will get bailed out. This is classic moral hazard. Once you remove risk of lose people will make decisions that are reckless.
Why wouldn’t they? You said it yourself, they will get bailed out. This is classic moral hazard. Once you remove risk of lose people will make decisions that are reckless.
Exactly. Consequences are necessary to curb reckless behaviour. That’s why the leaders of these entities should be punished separately.