The willingness of the government to support financially institutions it feels are "too big to fail" is said to create a "moral hazard;" by indirectly underwriting the errors of these corporations the government may be supporting those very errors. This might encourage people in those corporations to behave recklessly with the knowledge that the government will support them regardless of the outcome. Thus the government might be subsidizing the corporation's errors and indirectly supporting irresponsible behavior.
It is interesting to hear the judgmental "moral" used as it is a rare bird indeed in this culture. But its exclusiveness is more interesting. So many people in this country have "taken the black" and gone into subsidized life. Social security, disability, welfare have all become a secular retreat, like monasteries, away from the work-a-day troubles of the world. Certainly these supports are well intentioned and probably usually well deserved but they are certainly well abused too.
Are they a social moral hazard?
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