Moral hazard"was a big issue after the 2008 collapse of Lehman Brothers Holdings Inc., when the government bailed out several other banks. It created the idea that they were too big to fail and that their executives and bondholders would be protected from their own mistakes."
In recent weeks, it appears that investors have returned to risk-taking in hopes of government intervention. During the week tracked above, "the Dow Jones Industrial Average surged 503 points in the first three days of [the] week on hopes Mr. Bernanke would announce some kind of monetary stimulus in Friday's speech [delivered September 2, 2011] in Jackson Hole, Wyo. It fell 171 points Thursday on fears he wouldn't. Then it rose 134.72 points Friday on hopes that the Fed's decision to expand its September meeting to two days was a signal that it was preparing to discuss some kind of stimulus."