• Home
  • Contact Us
  • Log In
  • RWB
  • My Account

Metamorphosis Consulting, Inc.

Management Consulting Firm

  • Welcome
  • About Met
  • Services
  • Clients & Testimonials
    • All Testimonials
    • Legal
    • Medical
    • Real Estate
    • Small Business Mgnt
    • Wealth Mgnt
  • Cup O’ Joe Samples
    • Buyer Consideration Samples
    • Seller Consideration Samples
    • Prospecting Samples
    • Relationship Management Samples
  • Cup of Joe Members Only
    • Request A Marketing Piece
    • RWB
    • Buyer Considerations
      • Joe’s Buyer Top Choices
    • Seller Considerations
      • Joe’s Seller Top Choices
    • Prospecting
      • Joe’s Prospecting Top Choices
    • Listing Presentations
    • Selling Your Listings
    • Seller Price Reductions
    • Negotiation Strategies
    • Salesmanship
    • Relationship Management
    • Economic Considerations
    • Personal Productivity
  • Contact Us

Beware the Moral Hazard

December 8, 2010 by Joe McAuliffe

Beware the Moral Hazard

Last year the government bailed out the banking systems and investors by buying more than one trillion dollars in troubled assets. This action caused a lot of concern among economists and regulators who feared that doing so would only encourage investors to make more bad decisions because there were no consequences to taking risks and making bad investment decisions. This is a true example of ‘moral hazard,’ i.e., the encouragement of investors and other individuals to take too much risk because there are no consequences.

An example of this end result is also seen from the government’s stimulus spending under QE2 a few days ago, when poor employment numbers were released, the stock market actually surged in value instead of dropping. Despite the poor data, the market improved because investors know that the government will continue to throw more stimulus money at the problem until it improves.

The unintended consequence of the government trying to solve the problem is actually creating other problems because of the Moral Hazard.

 

 

Filed Under: Economic Considerations, Uncategorized

Search

Joe’s Top Choices

  • Joe’s Buyer Top Choices
  • Joe’s Prospecting Top Choices
  • Joe’s Seller Top Choices

Cup o’ Joe Categories

  • Buyer Considerations
  • Seller Considerations
  • Seller Price Reductions
  • Prospecting
  • Relationship Management
  • Negotiation Strategies
  • Economic Considerations
  • Listing Presentations
  • Salesmanship
  • Business Management
  • Selling Your Listings

Clients

  • Log In
  • RWB
  • Your Profile
Managing Partner, is one of the top business consulting professionals in Florida. He has worked with Fortune Magazine, Oracle, Network Solutions, Computer Associates, and Lawyers.com. Some of MET’s current clients include Christie’s & Illustrated Properties, Coldwell Banker, Merrill Lynch, Smith Barney and Sotheby’s.
  • Welcome
  • About Met
  • Services
  • Clients & Testimonials
  • Cup O’ Joe
  • Contact Us
  • Blog
  • Disclaimer & Privacy Policy
  • Log In
(772) 234-0301 Office | success@metworldwide.com | 2014 © Metamorphosis Consulting Services, Inc. | Disclaimer & Privacy Policy