January 12, 2010 7:37AM 

# Government-Subsidized Risk Is a Bad Idea 

By [Daniel J. Mitchell](https://www.cato.org/people/daniel-mitchell) 

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Kudos to Nicki Kurokawa, a former Cato employee, for this short but substantive video explaining “moral hazard.” She notes that government-subsidized risk played a pernicious role in the housing bubble and financial crisis, and warns that “too big to fail” may create similar problems in the future.

##### Related Tags 

[Regulation](https://www.cato.org/regulatory-studies) 

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