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David Kotok's definition of moral hazard: "The action is done today and the price is determined...

David Kotok's definition of moral hazard: "The action is done today and the price is determined later; after the chickens have come home to roost." By that time, the leaders who brought on the moral hazard are gone, and those who inherit the mess get the blame. "Government only knows how to run up small losses until they are huge."
Comments (3)
  • TVIX had small losses which became huge....
    2 Apr 2012, 03:05 PM Reply Like
  • More can kicking. . .
    2 Apr 2012, 03:23 PM Reply Like
  • "run up small losses..." my a*s! Has Kotok taken a look federal spending in the last half century?
    2 Apr 2012, 03:37 PM Reply Like
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