Moral Hazard

Dan Bink: Moral hazard is the study of how people take risks when they're in danger. He says that if you want to predict which countries are going to have a financial crisis, look to see where us. Troops are deployed. This suggests that when we deploy troops out there, it makes country say, ey, we're protected. We can take some risks. And that's pretty much the stounded definition of moral hazard. Dan bink: I'm going to turn on my stop watch here, and i'm going to give you one minute now. Remember, the car horn will sound if you exceed your one minute so get ready right now.