____________________________________ Travis W Fast
> On Nov 9, 2006, at 4:20 PM, tfast wrote:
>
> > Not to mention the fact that if they are too ardent about the whole
> > stabilization project they will encourage excessive moral hazzard.
>
> What's excessive? Moral hazard is public policy to some degree;
> remember the Greenspan put?
>
> Doug
>
Yes to some good degree. I believe it is called asset price stabilization in
the face of inflation but not bubbles. Although Greenspan argued it was a
floor in the basement of a very tall building. I suspect if the past is
anything to go by the closer we get to the balance sheets of US capital the
shorter that building is going to get. It is here where we will find out
how exessive the moral hazzard is/was.