Saturday, January 16, 2010

Hazards and Risk

[Welcome Industry Radar readers!]

No, not those Hazzards: moral hazards. We've discussed this principle before:

"[T]he risk that coverage against a loss might increase the risk-taking behavior of the insured."

But insurance isn't the only sector to employ this principle; the lending industry has its own version, which unfortunately seems to have been given short shrift of late. The Center for Freedom and Prosperity explains:

[Hat Tip: Hot Air]
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