moral hazard [?môr?l ?haz?rd]
NOUN
economics
lack of incentive to guard against risk where one is protected from its consequences, e.g. by insurance.
The market continues to act very well given the horrific economic headlines that have crossed the wires in recent weeks. Over 38 million Americans have now filed new unemployment claims in the nine weeks since the Covid19 outbreak triggered a tsunami of state lock downs (most of which were unnecessary). Retail sales fell over 16% in April and industrial production fell north of 13%, declines we did not even see during the