Market Madness: Moral Hazards and Excesses move on

Market Madness

Who fouled up the economy? Chicago sports economist Allen Sanderson seeded the teams for our bracket. Was it the Chicago School? Investment banks? Consumers? As part of the University of Chicago Magazine's special issue on the economy, you can vote on each matchup to help determine who, or what, ultimately caused the deepest downturn since the Depression. The chosen culprit will be announced October 5.

The latest results are in and voters picked the Moral Hazards (77 percent) over the Feeding Frenzies and the Excesses (56 percent) beat the Bailouts. Sign in and vote on today's matchup between the Foreclosures and Malthusians. Participation enters you to win a free lunch on us. Check back at the Market Madness site weekdays at noon to see results and vote on the next matchup.

To date, all of Sanderson's picks (made in advance of the bracket's launch) match the public's vote. Picking the Moral Hazards and Excesses to move on, Sanderson explains his choices:

sanderson-headshot.jpg Region 2: Wall Street

Moral Hazards v. Feeding Frenzies

It’s easy, and not always misplaced, to blame the Media. But this one is a real miss-match and the Moral Hazards are simply stronger at every—pun intended—offensive position. The Feeding Frenzies can only watch and marvel at the sheer talent displayed by their opponents.

Excesses v. Bailouts

This is one of the more evenly-matched first-round contests. But in the end the Excesses eke out a victory on the basis a deeper bench; rather than depending on a declining, one-dimensional “auto”matic game plan featured by the Bailouts, the Wall Street team can beat you in so many ways.

September 16, 2009