We can do better than ‘Lose – Lose’ at Centennial (CO)

Could of, should of, or must of –– does the theory of “Moral Hazard” mean we should punish the residents of Centennial or Puerto Rico for the alleged bad judgment of past leaders?  Being a locally grown column, I won’t spend much time on Puerto Rico except to ask how do we expect a country on the verge of bankruptcy to both repay its debt and rebuild its infrastructure with its economy in ruins? Do we just turn back the clock to the 1800s and let emigration of these citizens and a mounting death toll solve the problem?  Some of us do. Under the precepts of moral hazard, the public should not assist those entities who have made bad policy decisions in the past, lest others be tempted to follow their path by over spending in anticipation of a bail out. We saw that argument play out during the last recession when many urged letting the auto companies go bankrupt in order to teach them and others the importance of fiscal austerity.    Read the article…………….


Related Articles

Owner of Aurora (CO) HOA management company allegedly diverted funds, state officials say

The owner of an Aurora-based community association management company voluntarily surrendered his license after there were complaints he was diverting

News 5 Guardians (CO): HOA bylaws cast doubt on legitimacy

The homeowners association that recently foreclosed on a family in Peyton may be operating in violation of state law. The

FHFA move threatens associations and owners

In late December the Federal Housing Finance Agency (FHFA) released a statement expressing concern about state statutes that allow community