Moral hazardPer the Fannie/Freddie disaster -- when Americans travel overseas in questionable areas -- who bears the cost of saving them? As in this case --One of two main sorts of MARKET FAILURE often associated with the provision of INSURANCE. The other is ADVERSE SELECTION. Moral hazard means that people with insurance may take greater risks than they would do without it because they know they are protected, so the insurer may get more claims than it bargained for. (See also DEPOSIT INSURANCE, LENDER OF LAST RESORT, IMF and WORLD BANK.)
http://www.inthenews.co.uk/news/autocodes/countries/south-korea/taliban-free-more-hostages-$1127908.htm
Taliban insurgents released all remaining South Korean Christian aid workers held in Afghanistan today.The world is a dangerous place. Obviously.
The remaining seven hostages were released in two groups on Thursday, one day after 12 of the hostages held since mid-July were freed.
Agreement had been reached on Monday between the Taliban and South Korean negotiators to end the hostages' ordeal.
South Korea will remove its 200 troops and all missionaries and other civilians from Afghanistan by the end of the year in return for the release.
The 23 South Koreans originally captured were abducted as they travelled from Kandahar to Kabul on July 19th.
Two male hostages were subsequently killed after Taliban gunmen said their demands were not being met, while two female missionaries were later released as a goodwill gesture.
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