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Inside the Meltdown Critical Thinking exercise 1. What is moral hazard? What is systemic risk? Do you think Bernanke and Paulsen did the right thing?

Inside the Meltdown Critical Thinking exercise

1. What is moral hazard? What is systemic risk? Do you think Bernanke and Paulsen did the right thing? Why? Why do you think Paulsen would bail out Bear Stearns but let Lehman Brothers fail?

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