My opinion is that there should be no such thing as a guarantee for any financial instrument. It provides an illusion of safety that leads to mistakes. It's not just government guarantees that lead to moral hazard - it's any kind of financial guarantee.
"WASHINGTON — The deficit at the federal agency that guarantees pensions for 44 million Americans more than doubled in the last six months to a record high, reaching $33.5 billion, largely as a result of the surging number of bankruptcies among companies whose pensions it must now take over."
All financial instruments have risk - including guarantees. Put that into your recursive pipe and smoke it.
Read Nano-Plasm - you know you want to.
© 2005-2009 Stephen Clarke-Willson, Ph.D. - All Rights Reserved.