The impact on civil society of government generated instability

This article describes an example of the negative impact on civil society from moral hazard. Moral hazard is a pernacious, perverse outcome of state intervention in a free society. In this case, the bursting of the government induced housing bubble that is an inevitable result of moral hazard has significantly weakened the bonds that hold a civil society together.


In a particularly stark example of housing tensions found in many places to varying degrees, the International Village homeowners association responded to the banks' slowdown in foreclosures with an aggressive step: It began its own foreclosure process. Florida law permits that under certain circumstances. A nonprofit homeowners association can take temporary title of residential units from people who aren't paying monthly fees they agreed to pay.