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Tyler Cowen on Big Business

EconTalk

The Moral Hazards of Social Media

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Bondholders are the people who worry about downside risk, not equity holders. And I think the bailing out of bondholders and creditors generally is allowed a set of interlinking lending to each other that creates systemic risk. The consequences of it are we don't fully appreciate where that's headed. If you try to measure something like consumer surplus from Facebook, it's really quite high.

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