AuthorsDen.com  Join (free) | Login 

     Popular! Books, Stories, Articles, Poetry
   Services MarketPlace (Free to post!)
Where Authors and Readers come together!

Signed Bookstore | Authors | eBooks | Books | Stories | Articles | Poetry | Blogs | News | Events | Reviews | Videos | Success | Gold Members | Testimonials

Featured Authors: Bryan Koepke, iPatricia Sanders, iDarden North, iJeff Alt, iHarry and Elizabeth Lawrence, iPeazy Monellon, iSky Purington, i
  Home > Political Science > Articles
Popular: Books, Stories, Articles, Poetry     

Stephen R Cafaro

· Become a Fan
  Notify me of new titles
  added by this author.

· 36 titles
· 24 Reviews
· Share with Friends!
· Save to My Library
·
Member Since: Dec, 2007

   Sitemap
   Contact Author
   Read Reviews

Books
· Common Sense - Revisited in the New Millennium

· The Road to the Third World; Conspiring to Destroy America


Articles
· The American Dream - President Obama's Job Pan

· The American Economic Paradox - A Short History

· The America Radical

· The case for abolishing private banks

· More free money from your out of touch government

· Contradictory national priorities are a paradox for the political activist

· Will the USA have inflation, deflation or economic stagnation

· Healthcare confusion abounds as President Obama signs the monumental legisl

· Where have all the jobs gone

· What is the future of healthcare reform in the USA


News
· Stephen Cafaro is now writing for The Examiner

· Common Sense Press Release

Stephen R Cafaro, click here to update your web pages on AuthorsDen.

Traditional financial values have suffered a near fatal blow during the current economic crisis.

 

The real story of moral hazard is hidden behind the headlines that announced the trillions of dollars given to businesses and investors that were categorized as “too big to fail”.  Free market principles were sacrificed so that failed and inefficient companies could survive. No one can disagree that those companies salvaged by the government’s generosity will have a tendency to take still greater risk at some future time, and will, once again, endanger the economic health of our country. But, there remains a greater moral dilemma that contaminates the social standards of the people of our nation.

The real quandary lies in the hearts, minds and pocket books of the hundreds of millions of Americans who were not entrapped by the euphoric wind song of greed that created the economic maelstrom.  While their neighbors were investing more than they had in the promise of future wealth, the frugal majority saved their money and invested it on the advice of financial planners. Even as they heard the tales of instant riches accruing to a timely “flipping” of an investment, the conservative masses held fast to the time honored tradition of “a penny saved is a penny earned”. Many thought that the dramatic increases in home prices was a result of market hysteria and choose to stay on the sidelines of what ultimately became known as a giant asset bubble. They thought themselves to be safe, but they have come to realize they are the biggest losers in the current economic calamity.

The financial losses are dramatic for those who had avoided the rush to riches. Foreclosures and the dramatic decline in home values have made homes priced at fair market near impossible to sale.  Those who saved money find themselves unable to get a reasonable rate of return because the government is holding interest rates low to salvage the financial institutions that created the crisis. Those who invested in seemingly safe investment portfolios have been decimated by the stock market collapse that accompanied the housing and mortgage crisis. In summary, those who did the right thing are being punished while those who behaved irresponsibly are being rewarded. This is the real moral hazard which, left unchecked, will permanently scar the minds of those who recognize the irrational irony.

And what effect does this all have on the future? As one comes to realize that the old values of saving for a rainy day no longer make sense, who will continue to play the fool?  Why would one hesitate to venture into risky situations if the government will save you from yourself?? And at some future date when the disease of irresponsibility has permeated America, who will be left to pay for the excesses of a society that has lost its moral and financial compass?                  

 

Web Site www.SteveCafaro.com
f

Reader Reviews for "Moral Hazard - the failure of traditional financial values"


Want to review or comment on this article?
Click here to login!


Need a FREE Reader Membership?
Click here for your Membership!


Reviewed by John Bidwell 3/4/2010
Frightening.
I wish this had more press.

John

Books by
Stephen R Cafaro



Common Sense - Revisited in the New Millennium

Buy Options
Signed copy!
Amazon, Barnes & Noble, more..




The Road to the Third World; Conspiring to Destroy America

Buy Options
Signed copy!
Amazon, Barnes & Noble, more..


Popular
Political Science Articles
  1. Je Suis Charlie? ¿Yo soy Charlie?
  2. 10 Predictions for the Coming Decade
  3. Would Kerry Continue His Going Back and Fo
  4. Republicans
  5. America - Nation of extremes
  6. The Ant and The Grasshopper
  7. Election Time USA and the Theatre of the A
  8. Obama’s Disappointing Record
  9. 7 Ways to Help Replace Legislated Fear wit
  10. Mexican Retriever, Huh
  11. Are We Interfering Too Much In Other Count
  12. Fairy Tale- Press Democrate-Feb 10
  13. Réveillez-vous mes amis americains
  14. A mes amis Tunisiens
  15. Election November 2014
  16. A Man Is Known by the Company He Keeps
  17. Build a jail, never fail
  18. For the Att. of Mr. Barack Obama, Presiden
  19. Social Security History
  20. Debate-Press democrate, Santa Rosa, Ca.-09

You can also search authors by alphabetical listing: A B C D E F G H I J K L M N O P Q R S T U V W X Y Z



Featured Authors | New to AuthorsDen? | Add AuthorsDen to your Site
Share AD with your friends | Need Help? | About us


Problem with this page?   Report it to AuthorsDen

© AuthorsDen, Inc. All rights reserved.