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Monday, July 27, 2009

Bad loans, government, and moral hazard

No economy can be made productive and efficient by people (through their government) buying up the bad loans that banks made during a boom. That encourages these and other banks to make more bad loans in the future and rewards them for having made bad loans in the past.
-- from "23.7 Trillion Reasons To Buy Gold" by Michael S. Rozeff

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