about financial crisis

 

Moral hazard needs to be faced.There is an inherent contradiction when financial entities are permitted to reap extraodinary profits and manage vast assets and the, when conditions change, are declared too large to be permitted to fail, requiring taxpayer's bailouts. Fiancial institutions,whether investment banks or hedge funds,need oversight in a way that protects the taxpayer's interest.

道德风险必须面对。有一个内在的矛盾问题，即金融实体被允许获得超额利润和管理庞大资产，而当境况发生变化，又被宣布因其太大不能允许其倒闭，却要求纳税人来救市。金融机构，无论是投资银行或是对冲基金，需要以某种方式加以监管，以保护纳税人的利益。