Changing the Bedclothes
Tuesday, July 30, 2002
The government has long planned to abrogate its blanket guarantee scheme and each time the plan fails to materialize, the moral hazard it causes catches us by surprise. Now, after a long wait, there is news that the program would be scrapped. Who wouldn't feel relieved? It won't matter that the plan will be realized in stages. What counts is that this policy will benefit both bankers and the public alike.
If this policy, announced two we
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