Soaring Student Debt Prompts Calls for Relief

Re:Soaring Student Debt Prompts Calls for Relief by dpark on Tuesday September 13, 2016 @11:11PM (#12494011)

Is it not also a moral hazard to lend unceasingly knowing that you'll destroy the economy before taking a hit on the bad loans you've issued?

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Re:Soaring Student Debt Prompts Calls for Relief by gozur88 on Tuesday September 13, 2016 @11:35PM (#12494087)

I don't think so. Getting companies to lend to students was the whole point of the program. Normally you'd use the term to describe unwanted side effects.

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Re:Soaring Student Debt Prompts Calls for Relief by dpark on Wednesday September 14, 2016 @02:00AM (#12494542)

The term describes the situation in which the cost of one party's risks are born by another party. Whether it's "unwanted" doesn't actually seem that relevant. If foolish incentives create a moral hazard, the moral hazard still exists regardless of the intent behind the incentives.

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