{"id":1459,"date":"2011-08-23T14:25:59","date_gmt":"2011-08-23T14:25:59","guid":{"rendered":"http:\/\/www.multiplier-effect.org\/?p=1459"},"modified":"2011-08-23T14:27:48","modified_gmt":"2011-08-23T14:27:48","slug":"its-a-classic-case-of-moral-hazard-2","status":"publish","type":"post","link":"https:\/\/blogs.bard.edu\/multiplier-effect\/its-a-classic-case-of-moral-hazard-2\/","title":{"rendered":"&#8220;It&#8217;s a classic case of moral hazard.&#8221;"},"content":{"rendered":"<p>Levy Institute President Dimitri Papadimitriou, as <a href=\"http:\/\/www.huffingtonpost.com\/2011\/08\/22\/federal-reserve-12-trillion-loans_n_933615.html\">quoted <\/a>in the <em>Huffington Post<\/em> in reference to revelations of the Fed&#8217;s $1.2 trillion in &#8220;<a href=\"http:\/\/www.bloomberg.com\/news\/2011-08-21\/wall-street-aristocracy-got-1-2-trillion-in-fed-s-secret-loans.html\">secret loans<\/a>&#8221; to banks and other companies.<\/p>\n<blockquote><p><em>Papadimitriou told The Huffington Post that the Fed issued many of its biggest loans during the Bush administration, and that &#8220;they didn&#8217;t appear to have any difficulty supporting the financial sector, but very much difficulty supporting the real sector, households.&#8221; &#8230;<\/em><\/p>\n<p><em>&#8220;One would assume banks are too interconnected, you have to help all of them,&#8221; Papadimitriou said. &#8220;But if you take households in total, they are also all interconnected. They are also too big to fail.&#8221;<\/em><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Levy Institute President Dimitri Papadimitriou, as quoted in the Huffington Post in reference to revelations of the Fed&#8217;s $1.2 trillion in &#8220;secret loans&#8221; to banks and other companies. Papadimitriou told The Huffington Post that the Fed issued many of its biggest loans during the Bush administration, and that &#8220;they didn&#8217;t appear to have any difficulty [&hellip;]<\/p>\n","protected":false},"author":202,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25],"tags":[],"class_list":["post-1459","post","type-post","status-publish","format-standard","hentry","category-levy-institute"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/posts\/1459","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/users\/202"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/comments?post=1459"}],"version-history":[{"count":5,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/posts\/1459\/revisions"}],"predecessor-version":[{"id":1464,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/posts\/1459\/revisions\/1464"}],"wp:attachment":[{"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/media?parent=1459"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/categories?post=1459"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/tags?post=1459"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}