Bernanke Downplays ‘Moral Hazard’ in Foreclosure Help

" Federal Reserve chairman Ben Bernanke on Wednesday responded to questions from the House Financial Services Committee on bankruptcy judges rewriting mortgage terms for borrowers at risk for foreclosure. Bernanke acknowledged the popular “moral hazard” argument against such modifications, but suggested the consequences of doing nothing in the face of sweeping foreclosures would outweigh the moral benefit of forcing irresponsible borrowers to face the music of foreclosure."