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Jeff Bezos on the Moral Hazard

Bezos was on air this morning. He made a good point with a simple analogy. When the kids are sitting there striking matches in the bedroom, setting the bedroom on fire, you need to put the fire out and save the moral hazard debate for the time when the house has not burned down. If this is indeed the situation we are in, he could very well be right. My concern? What if the fire in the bedroom is extinguished, but the house still burns to the ground? Meaning, no one really knows if government intervention will work as the fires are moving too fast and coming from too many angles. It’s all a big gamble to think the government can douse this fire out.

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