I've come across a new term (for me) i.e. externalities it seems that it is a positive or negative side effect of an economic transaction.
That is it is something the market does not allow for? Examples given were pollution and beekeeping.
If a bank fails it is not the fault of any one transaction but a series of transactions can cause the externality of bank failure. Moral hazard is wrapped u pin here somewhere too. At this stage I couldn't follow the discussion any more.
Anybody any thoughts on this??