Tom SpencerWARREN Buffett is an American investor born in 1930 in Omaha, Nebraska. Buffett is often referred to as the “Oracle of Omaha” and is the world’s most successful stock market investor. Buffett is the largest shareholder and CEO of Berkshire Hathaway. He has an estimated net worth of around $US45 billion. In 2010, Forbes ranked […]
In the previous post on Moral Hazard, we learnt that Moral Hazard refers to any situation where a person is not fully responsible for the consequences of their actions. As a result, they may take greater risks than they would have otherwise. Here are 6 examples of situations where Moral Hazards arise in practice. 1. Insurance […]
Moral hazard is when they take your money and then are not responsible for what they do with it. ~ Gordon Gekko 1. Relevance of Moral Hazard THE unemployment rate in the United States is now around 9%. Over 13% of all US mortgages are either delinquent or in foreclosure (Mortgage Bankers Association). Total loses […]