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A comment on Why the Federal Reserve is pouring money into the financial system. Parent comment

Re:Why the Federal Reserve is pouring money into the financi... by Cakez0r on Friday September 20, 2019 @10:03AM (#21026775)
Following that line of reasoning, isn't a bank incentivised to accrue as much debt as possible because the fed will just bail them out if they can't pay it back?
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Re:Why the Federal Reserve is pouring money into the financi... by sedeki on Friday September 20, 2019 @11:10AM (#21027551)
Taken to the extreme, yes. If enough banks do it, the reason for bailout is called "too big to fail".
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Re:Why the Federal Reserve is pouring money into the financi... by the_watcher on Friday September 20, 2019 @11:41AM (#21027925)
That's the moral hazard, yes.
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