The only way to deal effectively with the moral hazard risk created by the consequences of this crisis and by the too big to fail problem is to make sure there is a set of reforms in place.
Tim Geithner: “The only way to deal effectively with the moral hazard risk created by the consequences of this crisis and by the too…”
Editor's note · Context
Geithner emphasizes the need for reforms to manage risks from large financial institutions.
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It's not a partisan issue. It's traditionally had a lot of bipartisan support.
If you call into question the willingness of the Government of the United States to meet its obligations, you will shake the basic foundations of the entire global financial system.
It would be better for the country for Congress to provide some certainty about how we are going to address these long-term fiscal problems.
we have suggested that the burden for the revenues that would have to come on the individual side should fall on the most fortunate 2 percent of Americans through an increase in the effective tax rate on those individuals.





