Financial moral risk and its prevention

By the U.S. subprime mortgage crisis triggered by the destruction of a huge international financial crisis. In this financial crisis, speculation that the core spirit of capitalism, because of greed, flooded and profoundly greedy capitalist nature of dialysis, to a large extent, this crisis is not a traditional economic crisis of overproduction, and is a financial innovation by the American system of moral hazard that led to the financial and moral crisis.
The so-called moral hazard, also known as moral hazard refers to people engaged in economic activities to maximize effectiveness while enhancing their own and make other people's actions are not conducive. This risk is often as a potential, hidden, sudden, destructive and control of the long-term and arduous, and so on. The real risk arising due to the transfer, the income obtained through the transfer of risk once the parties realize the inherent benefits and risks of externalization, it will maximize the pursuit of profit maximization.
Modern financial innovation continue to spread and transfer with moral hazard, but can not completely eliminate it permanently. As long as there exists a market economy, moral hazard is inevitable. The reality of information asymmetry can not be eliminated, based on the limited human rationality and opportunistic tendencies, once the principal - agent relationship was set up, speculation and greed became the norm in the inevitable risk of moral hazard also follow. The key is how we should be through a rigid control system design, or code of ethics to be flexible constraints, the speculation and greed set in the controllable range, and thus minimize the risk of moral hazard.