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Entrepreneurs: Dealing with Government
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Blog

Entrepreneurs: Dealing with Government

In the face of radical uncertainty, some entrepreneurs are finding ways to make money in today's credit market.  Yesterday, Bloomberg ran an article on bank charges and mark to market accounting, but the lead for their article told an interesting story of entrepreneurship.  

03/05/2009
More Moral Hazard?
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Blog

More Moral Hazard?

President Obama said he would announce his plans to attack home foreclosure today just before signing the stimulus bill yesterday.  No matter what the plan is, it will undoubtedly shift incentives for homeowners or lenders.  Moral hazard is a term used in economics, business, and political science to describe a situation where one party is insulated from risk and that insulation changes their behavior so they behave as if they were not at risk.  Moral hazard comes up when an actor is not fully responsible for their actions—which could result in irresponsible behavior.

02/18/2009