Fear and moral hazard in Washington DC

Capitol Hill

The thought of politicians lecturing markets on discipline, integrity and moral hazard might seem risible to many in the corporate world. Much of the current ire on Capitol Hill is directed at the regulators, for their perceived failures in allowing today’s parlous market picture to develop. The economic consequences of these political debates are still in the balance.

Ranking member Spencer Bachus is one of the US House of Representatives’ more vociferous members on market matters. His attempt

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