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

To: Knighty Tin who wrote (89568)	2/16/2001 3:37:47 PM
From: Sam Citron	Read Replies (3) \| Respond to of 132070

Mike, Moral hazard is a risk in any intervention. But sometimes the risk of action is outweighed by the risk of inaction. I am referring, of course, to interventions to end credit dislocations that could have disturbing contagion effects by eroding confidence. I hope that I am wrong but my concern now is that the present administration may have such a laissez-faire bias that it may fail to act swiftly if a genuine international financial emergency should arise. I am not suggesting that financial crises can or should be merely "papered over" with money. But the system sometimes needs shock absorbers, and I worry that the Rubin put has expired. Cheers, Sam