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A comment on Banks Paid $32.6B in Bonuses Amid U.S. Bailout (2009). Parent comment

Re:Banks Paid $32.6B in Bonuses Amid U.S. Bailout (2009) by fnordfnordfnord on Monday February 09, 2015 @08:49AM (#9021098)
>Also, if the damage to the economy would be greater than the taxpayer loss of the bail-outs, they still make sense

This is short-term thinking; it gets you out of the mess you're in today, but it encourages more of the behavior that caused the mess to begin with.

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Re:Banks Paid $32.6B in Bonuses Amid U.S. Bailout (2009) by mrec on Monday February 09, 2015 @12:15PM (#9022282)
Exactly. That was a perfect textbook example of moral hazard.

http://en.wikipedia.org/wiki/Moral_hazard

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