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  • Biz LINGO: What is a "moral hazard"?

    Biz LINGO: What is a "moral hazard"?

    By McCombs School of Business
    McCombs School of Business
    Published: Feb. 25, 2010

    OK, we admit it. Sometimes the business world gets a bit bogged down in jargon. But this is important stuff, so we want to help clear up any confusion. In our new series, LINGO (the language of business), McCombs School of Business faculty offer bite-sized explanations of business vocabulary, sure to help you feel more informed.

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    • Quote 2
      Steve Sanchez said on Aug. 22, 2010 at 6:34 a.m.
      Moral hazard can be applied to the personal bankruptcies that are rising throughout the whole U.S. Is it OK for people to just file for bankruptcy and therefore eliminate their debt overnight? Or do we keep punishing these people for the one or two mistakes that they have made and never let them recover from it. Personally I believe we should give people the chance to recover and prove themselves, because it happened to me.