[hocndoc]

I was wrong in believing that lying was always illegal. Did the required mortgage insurance for loans over 80% help?

[LomanBill]

>>Did the required mortgage insurance for loans over 80% help?

 

Ask AIG.

 

I don't see how it helped, given the corruption was so systemically entrenched and wide spread.  It probably made the situation worse by encouraging even greater gaming -- because it further removed the perception of consequence from the game.

Moral hazard

In economic theory, moral hazard is a situation in which a party insulated from risk behaves differently from how it would behave if it were fully exposed to the risk....

 

http://en.wikipedia.org/wiki/Moral_hazard

 

What could possibly go wrong if we just squeeze the goose a little harder?  After all - it is insured.