Monday, October 22, 2007

The moral hazard and subprime crisis limerick

In response to my required posting to the class blog on moral hazard in lieu of the international business transactions midterm, one of my very esteemed students - a clear standout, and I'll identify him if he says it's okay - posted the following limerick:

There once was a banker named Lazard
Whose sale of houses became a bit laggard
Bernanke said, "Great!
I'll lower the rate!"
And created a big Moral Hazard.

Well. Automatic A in the class or not? I really do have some remarkable law students. He has since added two more:

There once was a man: Ian Fleming
Whose thrillers were always best selling.
James Bond loves to bet
And bought sub-prime debt
"The market has tanked!" He is yelling.

Now the Fed needs to give it a whirl
With a woman to make his toes curl.
Buy a put on Bernanke,
He loves Hanky Panky
Moral Hazard's the name of his bond girl.