And advice for Ben for Monday?
HP's advice: Hold steady, and send this message to failed flippers, housing gamblers, reckless lenders, stupid builders, ramen eating realtors, immoral mortgage brokers and brain-dead bankers: We're done with bubbles. You made your bed, now sleep in it.
Fed Treads Moral Hazard
Wall Street has a dream: that the Federal Reserve will rescue financial markets with a sharp cut in interest rates.
Behind that dream lurks a problem, something financial people call moral hazard.
Moral hazard is an old economic concept with its roots in the insurance business. The idea goes like this: If you protect someone too well against an unwanted outcome, that person may behave recklessly. Someone who buys extensive liability insurance for his car may drive too fast because he feels financially protected.