Moral hazard
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Come and get it
Wikipedia’s got as useful a definition of moral hazard as any, I suppose:
In economics, moral hazard occurs when someone increases their exposure to risk when insured, especially when a person takes more risks because someone else bears the cost of those risks.
A party makes a decision about how much risk to take, while another party bears the costs if things go badly, and the party isolated from risk behaves differently from how it would if it were fully exposed to the risk.
I wonder how many of these Greenwich “victims” made their money from designing and peddling sub-prime mortgages?
The harm caused by laziness and sloth of these car owners isn’t borne exclusively by the (former) car owners; insurance rates rise for everyone, and the treasure trove of unlocked, available luxury rides draws criminals to a neighborhood like a dead fish hung over a water bucket draws hornets. The owners get nice new cars while the rest of us pay. Bernie Sanders supporters?
