Posted AT 6:13 AM EST on 30/06/08
How to achieve structured product accountability
In economic parlance, the term is "moral hazard" — defined as the incentive for one party to act more aggressively, as others will bear the downside consequence. If there is no consequence of being imprudent, we may as well join the crowd and invest all our savings in the next hot stock tip we hear at a cocktail party. I love the Texas saying that goes as follows: "We don't hang people for stealing horses. We hang people so that horses won't be stolen.
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