The Hill News

President Obama has created a number of moral hazards by trying to bail out Americans whose risky behavior got them into trouble.

An example of the moral hazard being created in Washington is the attempt to relieve monthly mortgage payments of families in economic distress whose mortgages are underwater. As a result of this program, taxpayers who lived modestly, saved and did not overextend themselves with excessive mortgage debt are being asked to subsidize their profligate neighbors who bought bigger houses than they could afford.

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