A couple of years ago the business press was typing away on the concept of moral hazard. It trickled its way down I95 and then our elected officials in DC starting talking about it. Moral hazard is the idea that someone can take risks without worrying about the repercussions of those risks. They were talking about Wall Street. Did the big banks think they could take all the risks associated with the mortgage industry without having to deal with the consequences if those investments went sour?
In retrospect it kind of looks that way. They were bailed out by Washington, and many banks were made whole (or at least survived) as a result. My opinion is that the banks didn’t even really know how much risk they were taking, but maybe someone at the top was dealing with a moral hazard.
Either way, moral hazard is forever a part of our vocabulary as a result. Somebody decided to take it to another level, and make music about Wall Street. He calls himself Merle, Merle Hazard that is. His newest song is a tribute to the concern of a double dip recession.
But he’s got a lot more too. Gems like “Mark to Market” and “Greek Debt Song” are some of my favorites.
 By The Weakonomist |
The Weakonomist is the founder of Weakonomics. Clicking the picture of the puppy will tell you more about him. If you like what you're reading consider subscribing to the blog, following him on Twitter, and checking out the related posts below. Please consider a donation if you really enjoy Weakonomics. Also keep in mind that nothing I say can be construed as financial advice. |
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