How to Explain Moral Hazard

It took me many years to understand the phrase "moral hazard." It's a fundamental tenet of economics, usually used to explain that, since consumers are untrustworthy, businesses need to charge them...

This is What a Giant Vampire Squid Looks Like

Via Greg Mitchell's Twitter feed, lying isn't just for the IB branch any more: Goldman declined for three years to confirm their suspicions that it had bought their mortgages from a subprime lender,...

Reverse Robin Hood applies to banks too

The next time someone tells you that "the banks need help," just refer them to Barry Ritholtz:Talk about burying the lead: The Times also noted — in the very last paragraphs — how the big incompetent...

Miami Vice

Reality (h/t Dr. Black):In certain ZIP codes in places like Homestead and Florida City, around 25 percent of the homes are in one stage of foreclosure or another. Countless others were built by...