Carti in categoria Diverse

During the financial crisis and the widespread government bailouts it entailed, ”too big to fail” became a common term to describe implicit and explicit govern- ment guarantees of firms deemed integral to developed economies only because their failure would threaten economic collapse. The term also referred to the moral hazard of the creditors behind these firms who had the expectation of gov- ernment protection. By not facing any downsides to their investment, creditors were incenti...