I think a few of you in the saner parts of the world may not be aware of the discussion happening here in panic central (USA).

Both Paulson and Bernanke have made statements that bear on moral hazard. Even the great god Milton Friedman's beliefs are being questioned in some quarters.

So I thought it was appropriate to look at the idea of moral hazard as a viable concept altogether. I find myself these days discussing (well not actually discussing, since I never get any replies) many of the terms that economists use without defining.

I've dealt with "savings" vs "spending" before, without much luck. A good sample of what the mood is like can be gathered from following Paul Krugman's NY Times blog. He's liberal, but likes to comment on the conventional (conservative) wisdom, while never questioning the fundamentals of market capitalism itself.

Resume discussing mustard, which, by the way, no longer comes in an all metal can (at least around here).

Policies not Politics
---- Daily Landscape