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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (85863)	11/24/2000 10:35:29 PM
From: George Acton	Respond to of 132070

>> people aren't dumb. if they learn they will be bailed out then they take more risk. the more risk they take, the bigger the problem when it hits the fan. i temporarily forgot the term for this. it is a real psychological effect. << It's called "moral hazard". There's a good book that goes into this. It's by a guy named Kindleberger and the title is something like "Bubbles, Panics and Crashes". He has dozens of historical examples. It's written from the standpoint of whether and when the authorities can intervene to minimize the fallout on innocent bystanders. For this reason, I didn't read it very closely, since I was looking for get-rich-quick ideas. (Actually, ideas about how not to get poor quick.)