Tag Archives: adverse selection

Andy Xie on China’s Moral Hazard, and it’s Impact…

Dr Andy Xie commented in his recent article in Caixin Online that there are two evil forces that are poisoning China’s financial system: moral hazard and adverse selection. “While preventing a systemic crisis in coping with failing trust products should be a priority, indiscriminate bailouts would merely delay the inevitable and leave a bigger blowup […]