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The 'Helicopter Parent' Fed and the Fatal Crash of Risk


The Federal Reserve is the nation’s 
Helicopter Parent, saving everyone from the consequences of their actions. We all know what happens when over-protective 
Helicopter Parents save their precious offspring from any opportunity to learn from mistakes and failures: 
they cripple their child’s ability to assess risk and learn from failure, guaranteeing fragility and catastrophically blind-to-risk decisions later in life.
Helicopter Parents generate a perfection of 
moral hazard, defined as 
Moral hazard perversely increases the incentives to take on more risk because 
Mommy and Daddy (the Fed) will always save me / bail me out.
For example, when Mommy and Daddy make their reckless teen’s DUI charge go away, the teen’s already potent sense of godlike liberation from real-world consequences floats even higher. So next time the teen gets into his car drunk and takes his friends on a high-speed spin down Mulholland Drive, he loses contr ....

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