financial

Moral Hazards in the Marketplace

Exterior moral hazards abound these days.  From individuals to financial institutions to sovereign nations, it seems that there is an increasing need to be bailed-out and to have debt forgiveness. Moral hazards most often occur when parties who are largely insulated from risk behave differently from the way they would normally behave if they were fully exposed to the risk. […]

The Debt Ripple Effect

The headline jumped out at me: “Fed official says tax code provides incentives to carry debt.” For the past several years, the topic of debt has become increasingly important, for individuals, organizations, even nations. That headline got me thinking… regardless of the incentives, how should Catholics regard debt? It also hit me – we need to think about the “ripple […]

Placing People Over Profits

Short-term profits and “pay for performance” carry far more weight in our capitalistic system than does “doing the right thing” and placing people over profits.  Truly, the current hallmark of capitalism is making a profit and not ethical conduct. Wall Street offers little consolation for those companies who may have taken current charges against profitability in order to do the […]