Tag: principal-agent problem

Bank Bailouts and other Moral Hazards

Post author By Tom Spencer
Post date December 4, 2010
No Comments on Bank Bailouts and other Moral Hazards

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 […]

Tags bank bailouts, corporation, downturn, Economics, financial crisis, Greenspan Put, insurance, Jeffrey Miron, limited liability, moral hazard, mortgage securitisation, NINJA loans, principal-agent problem, Private Equity, TARP

Skills, Tips, and Tactics

Consultants – highly paid scapegoats?

Post author By Tom Spencer
Post date November 16, 2009
2 Comments on Consultants – highly paid scapegoats?

Consultants charge huge sums for superficial but well “powerpointed” presentations in return for the company executives’ right to take full credit for any successful outcomes MANAGEMENT consultants are often loudly criticised. Why is this so? A large part of the reason is that consultants are paid a lot of money to provide recommendations which may […]

Tags consulting, Management Consulting, Peter Spencer, principal-agent problem, scapegoats, sheep joke