During the bailout of AIG, Fannie Mae and Freddie Mac - and, at the time of writing, the still unresolved debate over the bailout of the entire US financial system - the phrase "moral hazard" has become popular, typically in conjunction with the phrase "privatising profits and socialising losses". It's easy to sympathise: the erstwhile masters of the universe seem to have forgotten the meaning of both "moral" and "hazard". Why should they be helped now?

Still, we might usefully remember what the antiquated jargon "moral hazard" means. The term originated in insurance, recognising the idea that people with insurance may be careless - for example, paying for secure off-street parking looks less attractive if your car is insured.