Guaranteed Bailouts: The Systemic Arrogance of Moral Hazard

Why do the world's largest banks and corporations routinely engage in apocalyptic financial gambling that could easily destroy their own companies? The terrifying reality is that they are not afraid of failure, because they operate under the ultimate economic safety net: Moral Hazard. In macroeconomic theory, moral hazard occurs when an entity exponentially increases its exposure to risk because...