"History Doesn't Repeat It's Self But It Often Rhymes" Mark Twain Moral hazard is a situation where an economic actor has an incentive to increase its exposure to risk because it does not bear the full costs of that risk. Or, put another way, it is when a party takes an excessive risk in bad faith, knowing another party is economically responsible for the outcome Looking back over time from the days of Mark Twain, The Reconstruction Era to the time of F. Scott Fitzgerald, Ga
