178-489: The Triangle Shirtwaist Factory fire in the Greenwich Village neighborhood of Manhattan , New York City , on Saturday, March 25, 1911, was the deadliest industrial disaster in the history of the city, and one of the deadliest in U.S. history. The fire caused the deaths of 146 garment workers —123 women and girls and 23 men—who died from the fire, smoke inhalation , falling, or jumping to their deaths. Most of
356-609: A fire escape , and stairways down to Greene Street and Washington Place, flames prevented workers from descending the Greene Street stairway, and the door to the Washington Place stairway was locked to prevent theft by the workers; the locked doors allowed managers to check the women's purses. Various historians have also ascribed the exit doors being locked to management's wanting to keep out union organizers because of management's anti-union bias. The foreman who held
534-455: A Committee on Public Safety was formed, headed by eyewitness Frances Perkins —who 22 years later would be appointed United States Secretary of Labor —to identify specific problems and lobby for new legislation, such as the bill to grant workers shorter hours in a work week, known as the "54-hour Bill". The committee's representatives in Albany obtained the backing of Tammany Hall 's Al Smith ,
712-417: A charity gift. But every time the workers come out in the only way they know to protest against conditions which are unbearable, the strong hand of the law is allowed to press down heavily upon us. Public officials have only words of warning to us-warning that we must be intensely peaceable, and they have the workhouse just back of all their warnings. The strong hand of the law beats us back, when we rise, into
890-426: A component of the crisis, arguing that many factors, including deregulation in the derivatives market in 2000, reduced federal oversight, and the potential for government bailout of "too big to fail" institutions all played a role in increasing moral hazard in the years leading up to the collapse. Others have argued that moral hazard could not have played a role in the financial crisis for three main reasons. First, in
1068-469: A decision about how much risk to take, while another party bears the costs if things go badly, and the party insulated from risk behaves differently from how it would if it were fully exposed to the risk. In microeconomics, agency theory analyses the relationship between the principal, the party who delegates decision making authority, and the agent, who executes the service. This theory is a key concept used to explore and resolve issues that have arisen within
1246-513: A description of the ethics or morals of the involved parties. Rowell and Connelly offer a detailed description of the genesis of the term moral hazard, by identifying salient changes in economic thought, which are identified within the medieval theological and probability literature. Due to the different approaches taken by economics and philosophy in interpreting the concept of “moral hazard,” there are significant differences in their understanding of its underlying causes. In economics, “moral hazard”
1424-775: A division of The New School, and the School's Graduate School expanded in the 2000s, with the renovated, award-winning design of the Sheila C. Johnson Design Center at 66 Fifth Avenue on 13th Street. The Cooper Union is located in Greenwich Village, at Astor Place , near St. Mark's Place on the border of the East Village . Pratt Institute established its latest Manhattan campus in an adaptively reused Brunner & Tryon -designed loft building on 14th Street, east of Seventh Avenue. The university campus building expansion
1602-653: A financial institution knows it is protected by a lender of last resort , it may make riskier investments than it would in the absence of the protection. In insurance markets, moral hazard occurs when the behavior of the insured party changes in a way that raises costs for the insurer since the insured party no longer bears the full costs of that behavior. Because individuals no longer bear the cost of medical services, they have an added incentive to ask for pricier and more elaborate medical service, which would otherwise not be necessary. In those instances, individuals have an incentive to over consume, simply because they no longer bear
1780-677: A frame house capacious enough to hold sittings of the New York General Assembly when smallpox rendered the city dangerous in 1739 and subsequent years; on one occasion in 1746, the house of Mordecai Gomez was used. Warren's house, which survived until the Civil War era , overlooked the North River from a bluff; its site on the block bounded by Perry and Charles Streets, Bleecker and West 4th Streets, can still be recognized by its mid-19th century rowhouses inserted into
1958-418: A ghastly eternity. Occasionally a girl who had hesitated too long was licked by pursuing flames and, screaming with clothing and hair ablaze, plunged like a living torch to the street. Life nets held by the firemen were torn by the impact of the falling bodies. The emotions of the crowd were indescribable. Women were hysterical, scores fainted; men wept as, in paroxysms of frenzy, they hurled themselves against
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#17327903947912136-481: A government agency, or by Fannie Mae and Freddie Mac , both for-profit government-sponsored enterprises . They are similar to the "covered bonds" that are commonly used in Western Europe in that the securitizing agency retains default risk. Under both models, investors take on only interest-rate risk, not default risk. In another type of securitization, known as "private label" securitization, default risk
2314-656: A group of 22 houses sharing a common back garden, built in the Greek Revival style and later renovated with Colonial Revival façades. In 1969, the LPC designated the Greenwich Village Historic District – which remained the city's largest for four decades – despite preservationists' advocacy for the entire neighborhood to be designated an historic district. Advocates continued to pursue their goal of additional designation, spurred in particular by
2492-430: A large pool of debt, and then shares in the pool were sold to many creditors. Thus, there is no one person responsible for verifying that any one particular loan is sound, that the assets securing that one particular loan are worth what they are supposed to be worth, that the borrower responsible for making payments on the loan can read and write the language in which the papers that he/she signed were written, or even that
2670-638: A more important cause, since some risky investments may have had positive expected payoff for the firm but negative expected payoff to society. Moral hazard has been studied by insurers and academics, such as in the work of Kenneth Arrow , Tom Baker, and John Nyman. The name comes originally from the insurance industry. Insurance companies worried that protecting their clients from risks (like fire, or car accidents) might encourage those clients to behave in riskier ways (like smoking in bed or not wearing seatbelts). This problem may inefficiently discourage those companies from protecting their clients as much as
2848-447: A more permanent home at 52 West 8th Street. The school remained active until 1958, when Hofmann retired from teaching. On January 8, 1947, stevedore Andy Hintz was fatally shot by hitmen John M. Dunn , Andrew Sheridan , and Danny Gentile in front of his apartment. Before he died on January 29, he told his wife that "Johnny Dunn shot me." The three gunmen were immediately arrested. Sheridan and Dunn were executed. The Village hosted
3026-532: A neighborhood still retaining many houses of the 1830–37 boom. From 1797 until 1829, the bucolic village of Greenwich was the location of New York State's first penitentiary , Newgate Prison, on the Hudson River at what is now West 10th Street , near the Christopher Street pier. The building was designed by Joseph-François Mangin , who would later co-design New York City Hall . Although
3204-688: A part of the Village ethos. Shortly after the New York City Landmarks Preservation Commission (LPC) was established in 1965, it acted to protect parts of Greenwich Village, designating the small Charlton-King-Vandam Historic District in 1966, which contains the city's largest concentration of row houses in the Federal style, as well as a significant concentration of Greek Revival houses, and the even smaller MacDougal-Sullivan Gardens Historic District in 1967,
3382-493: A pattern of arson among certain sectors of the garment industry whenever their particular product fell out of fashion or had excess inventory in order to collect insurance . The Insurance Monitor , a leading industry journal, observed that shirtwaists had recently fallen out of fashion, and that insurance for manufacturers of them was "fairly saturated with moral hazard ". Although Blanck and Harris were known for having had four previous suspicious fires at their companies, arson
3560-716: A plurality (42%) are between the ages of 25–44, while 24% are between 45 and 64, and 15% are 65 or older. The ratio of youth and college-aged residents was lower, at 9% and 10%, respectively. As of 2017, the median household income in Community Districts 1 and 2 (including the Financial District and Tribeca ) was $ 144,878, though the median income in Greenwich Village individually was $ 119,728. In 2018, an estimated 9% of Greenwich Village and SoHo residents lived in poverty, compared to 14% in all of Manhattan and 20% in all of New York City. Rent burden, or
3738-478: A potential case of moral hazard in the health care market caused by the purchase of health insurance. Assume health care has constant marginal cost of $ 10 per unit and the individual's demand is given by Q = 20 − P . Assuming a perfectly competitive market, at equilibrium, the price will be $ 10 per unit and the individual will consume 10 units of health care. Now, consider the same individual with health insurance. Assume this health insurance makes health care free for
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#17327903947913916-514: A reputation as leading progressive reformers working on behalf of the working class. In the process, they changed Tammany's reputation from mere corruption to progressive endeavors to help the workers. New York City's Fire Chief John Kenlon told the investigators that his department had identified more than 200 factories where conditions made a fire like that at the Triangle Factory possible. The State Commissions's reports helped modernize
4094-518: A role in the 2008 financial crisis , since numerous actors in the financial market may have had an incentive to increase their exposure to risk. In general, there are three ways in which moral hazard may have manifested itself in the lead up to the financial crisis: Notably, the Financial Crisis Inquiry Commission (FCIC), tasked by Congress with investigating the causes of the financial crisis, cited moral hazard as
4272-436: A root cause of the subprime mortgage crisis. He wrote that "the risks inherent in mortgage lending became so widely dispersed that no one was forced to worry about the quality of any single loan. As shaky mortgages were combined, diluting any problems into a larger pool, the incentive for responsibility was undermined." He also wrote, "Finance companies weren't subject to the same regulatory oversight as banks. Taxpayers weren't on
4450-497: A sound more horrible than description can picture—the thud of a speeding living body on a stone sidewalk". A large crowd of bystanders gathered on the street, witnessing 62 people jumping or falling to their deaths from the burning building. Louis Waldman , later a New York Socialist state assemblyman, described the scene years later: One Saturday afternoon in March of that year – March 25, to be precise – I
4628-498: A specific time period, the final health of the individual can be thought of as the outcome. The individual taking greater risks during the period would be ex-ante moral hazard whereas lying about a fictitious health problem to defraud the insurance company would be ex post moral hazard. A second example is the case of a bank making a loan to an entrepreneur for a risky business venture. The entrepreneur becoming overly risky would be ex ante moral hazard, but willful default (wrongly claiming
4806-744: A speech in Washington Square Park supporting her presidential campaign, a few blocks from the location of the Triangle Shirtwaist Factory fire. Sen. Warren recounted the story of the fire and its legacy before a crowd of supporters, likening activism for workers' rights after the 1911 fire to her own presidential platform. The Remember the Triangle Fire Coalition is an alliance of more than 200 organizations and individuals formed in 2008 to encourage and coordinate nationwide activities commemorating
4984-522: A subsequent civil suit in 1913 in which plaintiffs were awarded compensation in the amount of $ 75 per deceased victim. The insurance company paid Blanck and Harris about $ 60,000 more than the reported losses, or about $ 400 per casualty. Rose Schneiderman , a prominent socialist and union activist, gave a speech at the memorial meeting held in the Metropolitan Opera House on April 2, 1911, to an audience largely made up of members of
5162-528: A successful effort to create a permanent public art memorial for the Triangle Shirtwaist Factory fire at the site of the 1911 fire in lower Manhattan. In 2011, the Coalition established that the goals of the permanent memorial would be In 2012, the Coalition signed an agreement with NYU that granted the organization permission to install a memorial on the Brown Building and, in consultation with
5340-422: A week, the equivalent of $ 229 to $ 392 a week in 2023 currency, or $ 4.77 to $ 8.17 per hour. At approximately 4:40 pm on Saturday, March 25, 1911, as the workday was ending, a fire flared up in a scrap bin under one of the cutter's tables at the northeast corner of the 8th floor. The first fire alarm was sent at 4:45 pm by a passerby on Washington Place who saw smoke coming from the 8th floor. Both owners of
5518-429: Is a random draw by nature that determines the agent's type (such as his valuation for a good or his costs of effort). In the literature, two reasons have been discussed why moral hazard may imply that the first-best solution (the solution that would be attained under complete information) is not achieved. Firstly, the agent may be risk-averse, so there is a trade-off between providing the agent with incentives and insuring
Triangle Shirtwaist Factory fire - Misplaced Pages Continue
5696-491: Is an art school formed in the mid-1960s in the Village. Officially opened September 23, 1964, the school is still active, at 8 W. 8th Street, the site of the original Whitney Museum of American Art . Greenwich Village was home to a safe house used by the radical anti-war movement known as the Weather Underground . On March 6, 1970, their safehouse was destroyed when an explosive device they were constructing
5874-419: Is generally not retained by the securitizing entity. Instead, the securitizing entity passes on default risk to investors. The securitizing entity, therefore, has relatively little incentive to monitor originators and maintain loan quality. "Private label" securitization refers to securitizations structured by financial institutions such as investment banks, commercial banks, and non-bank mortgage lenders. During
6052-459: Is generally regarded as adding to both the historic character and charm of the neighborhood. In addition, as the meandering Greenwich Street used to be on the Hudson River shoreline, much of the neighborhood west of Greenwich Street is on landfill, but still follows the older street grid. When Sixth and Seventh Avenues were extended in the early 20th century, they were built diagonally to
6230-517: Is no guarantee to lending institutions that a bailout will occur. Decreased valuation of a corporation before any bailout would prevent risky, speculative business decisions by executives who fail to conduct proper due diligence in their business transactions. The risk and the burdens of loss became apparent to Lehman Brothers , which did not benefit from a bailout, and other financial institutions and mortgage companies such as Citibank and Countrywide Financial Corporation , whose valuation plunged during
6408-441: Is often attributed to the malignant development of utilitarianism. In contrast, philosophy and ethics view “moral hazard” from a broader perspective that includes the moral behaviour of individuals and society as a whole. The root cause of “moral hazard” is due to the immoral behaviour of economic agents from a social perspective. Their paper also compares and contrasts the predominantly normative conception of moral hazard found within
6586-710: Is the Isaacs-Hendricks House, at 77 Bedford Street (built 1799, much altered and enlarged 1836, third story 1928). When the Church of St. Luke in the Fields was founded in 1820, it stood in fields south of the road (now Christopher Street) that led from Greenwich Lane (now Greenwich Avenue ) down to a landing on the North River. In 1822, a yellow fever epidemic in New York encouraged residents to flee to
6764-628: Is the reaction to the negative consequences of risk once they have occurred and insurance is provided to cover their costs. That may be called ex post (after the event) moral hazard. Insured parties then do not behave in a more risky manner that results in more negative consequences, but they ask an insurer to pay for more of the negative consequences from risk as insurance coverage increases. For example, without medical insurance, some may forgo medical treatment due to its costs and simply deal with substandard health. However, after medical insurance becomes available, some may ask an insurance provider to pay for
6942-635: The Village Vanguard and the Blue Note are still presenting some of the biggest names in jazz on a regular basis. Other music clubs include The Bitter End , and Lion's Den . The Village has its own orchestra aptly named the Greenwich Village Orchestra . Comedy clubs dot the Village as well, including Comedy Cellar , where many American stand-up comedians got their start. Several publications have offices in
7120-591: The Bowery Poetry Club and others. Members of the Coalition include arts organizations, schools, workers’ rights groups, labor unions , human rights and women's rights groups, ethnic organizations, historical preservation societies , activists , and scholars, as well as families of the victims and survivors. The Coalition grew out of a public art project called Chalk, created by New York City filmmaker Ruth Sergel . Every year beginning in 2004, Sergel and volunteer artists went across New York City on
7298-459: The Caffe Cino at 31 Cornelia Street, operated by the eccentric Joe Cino , who early on took a liking to actors and playwrights and agreed to let them stage plays there without bothering to read the plays first, or to even find out much about the content. Also integral to the rise of Off-Off-Broadway were Ellen Stewart at La MaMa , originally located at 321 E. 9th Street, and Al Carmines at
Triangle Shirtwaist Factory fire - Misplaced Pages Continue
7476-618: The East River , for identification by friends and relatives. Victims were interred in 16 different cemeteries. Twenty-two victims of the fire were buried by the Hebrew Free Burial Association in a special section at Mount Richmond Cemetery. In some instances, their tombstones refer to the fire. Six victims remained unidentified until 2011, when Michael Hirsch, a historian, completed four years of researching newspaper articles and other sources for missing persons and
7654-503: The East Village - Haight Ashbury hippie scene of the next decade. The Village (and surrounding New York City) would later play central roles in the writings of, among others, Maya Angelou , James Baldwin , William S. Burroughs , Truman Capote , Allen Ginsberg , Jack Kerouac , Rod McKuen , Marianne Moore , and Dylan Thomas , who collapsed at the Chelsea Hotel , and died at St. Vincents Hospital at 170 West 12th Street, in
7832-526: The Film Forum . The Salvation Army 's former American headquarters at 120–130 West 14th Street is in the northern portion of Greenwich Village. Moral hazard In economics , a moral hazard is a situation where an economic actor has an incentive to increase its exposure to risk because it does not bear the full costs of that risk. For example, when a corporation is insured, it may take on higher risk knowing that its insurance will pay
8010-405: The Greenwich Village neighborhood of New York City. Under the ownership of Max Blanck and Isaac Harris, the factory produced women's blouses, known as " shirtwaists ". The factory normally employed about 500 workers, mostly young Italian and Jewish immigrant women and girls, who worked nine hours a day on weekdays plus seven hours on Saturdays, earning for their 52 hours of work between $ 7 and $ 12
8188-552: The Grey Art Gallery bordering Washington Square Park, at 100 Washington Square East. The Grey Art Gallery is notable for its museum-quality exhibitions of contemporary art. The Village has a bustling performing arts scene. It is home to many Off Broadway and Off-Off-Broadway theaters; for instance, Blue Man Group has taken up residence in the Astor Place Theater. The Village Gate (until 1992),
8366-673: The Landmarks Preservation Commission , indicated what elements of the building could be incorporated into the design. Architectural designer Ernesto Martinez directed an international competition for the design. A jury of representatives from fashion, public art, design, architecture, and labor history reviewed 170 entries from more than 30 countries and selected a spare yet powerful design by Richard Joon Yoo and Uri Wegman. On December 22, 2015, New York Governor Andrew Cuomo announced that $ 1.5 million from state economic development funds would be earmarked to build
8544-784: The National LGBTQ Wall of Honor was inaugurated at the Stonewall Inn; and on June 28, 2024, the Stonewall National Monument Visitors Center opened, as the first official national visitors center dedicated to the LGBTQ+ experience to open anywhere in the world. Numerous politicians and celebrities participated in the inauguration ceremonies, and the New York City Subway 's Christopher Street–Sheridan Square station
8722-568: The New York City Council 's 3rd district. In the 16th century, Lenape referred to its farthest northwest corner, by the cove on the Hudson River at present-day Gansevoort Street, as Sapokanikan ("tobacco field"). The land was cleared and turned into pasture by the Dutch and their enslaved Africans, who named their settlement Noortwyck (also spelled Noortw ij ck , "North district", equivalent to 'North wich /Northwick'). In
8900-774: The New York City Landmarks Preservation Commission on the basis of its status in LGBTQ history, and on June 24, 2016, the Stonewall National Monument was named the first U.S. National Monument dedicated to the LGBTQ-rights movement. Greenwich Village contains the world's oldest gay and lesbian bookstore, Oscar Wilde Bookshop , founded in 1967, while The Lesbian, Gay, Bisexual & Transgender Community Center – best known as simply "The Center" – has occupied
9078-491: The New York University (NYU) campus. The building has been designated a National Historic Landmark and a New York City landmark . Because the doors to the stairwells and exits were locked—a common practice at the time to prevent workers from taking unauthorized breaks and to reduce theft—many of the workers could not escape from the burning building and jumped from the high windows. There were no sprinklers in
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#17327903947919256-403: The North River (part of the Hudson River ) to the west, Houston Street to the south, and 14th Street to the north. It is roughly centered on Washington Square Park and New York University . Adjacent to Greenwich Village are the neighborhoods of NoHo and the East Village to the east, SoHo and Hudson Square to the south, and Chelsea and Union Square to the north. The East Village
9434-729: The Provincetown Players converted the structure into a theatre they christened the Cherry Lane Playhouse, which opened on March 24, 1924, with the play The Man Who Ate the Popomack . During the 1940s The Living Theatre , Theatre of the Absurd , and the Downtown Theater movement all took root there, and it developed a reputation as a showcase for aspiring playwrights and emerging voices. In one of
9612-478: The United States Secretary of Labor , Hilda L. Solis , U.S. Senator Charles Schumer , New York City Mayor Michael R. Bloomberg , the actor Danny Glover , and Suzanne Pred Bass, the grandniece of Rosie Weiner, a young woman killed in the blaze. Most of the speakers that day called for the strengthening of workers’ rights and organized labor. At 4:45 pm EST, the moment the first fire alarm
9790-543: The Velvet Underground . The Greenwich Village of the 1950s and 1960s was at the center of Jane Jacobs 's book The Death and Life of Great American Cities , which defended it and similar communities, while criticizing common urban renewal policies of the time. Founded by New York-based artist Mercedes Matter and her students, the New York Studio School of Drawing, Painting and Sculpture
9968-516: The West Bronx (the current site of Bronx Community College ), to Greenwich Village with many buildings around Gould Plaza on West 4th Street. In 1976 Yeshiva University established the Benjamin N. Cardozo School of Law in the northern part of Greenwich Village. In the 1980s Hebrew Union College was built in Greenwich Village. The New School , with its Parsons The New School for Design ,
10146-664: The West Village west of Seventh Avenue and the Meatpacking District in the northwest corner of Greenwich Village. Its name comes from Groenwijck , Dutch for "Green District". In the 20th century, Greenwich Village was known as an artists' haven, the bohemian capital, the cradle of the modern LGBTQ movement , and the East Coast birthplace of both the Beat Generation and counterculture of
10324-461: The Women's Trade Union League . She used the fire as an argument for factory workers to organize: I would be a traitor to these poor burned bodies if I came here to talk good fellowship. We have tried you good people of the public and we have found you wanting... We have tried you citizens; we are trying you now, and you have a couple of dollars for the sorrowing mothers, brothers, and sisters by way of
10502-489: The 1630s, Governor Wouter van Twiller farmed tobacco on 200 acres (0.81 km ) here at his "Farm in the Woods". The English conquered the Dutch settlement of New Netherland in 1664, and Greenwich Village developed as a hamlet separate from the larger New York City to the south on land that would eventually become the Financial District . In 1644, the eleven Dutch African settlers in the area were granted half freedoms after
10680-538: The 1960s . Greenwich Village contains Washington Square Park , as well as two of New York City's private colleges, New York University (NYU) and The New School . In later years it has been associated with hipsters . Greenwich Village is part of Manhattan Community District 2 , and is patrolled by the 6th Precinct of the New York City Police Department . Greenwich Village has undergone extensive gentrification and commercialization;
10858-476: The 19th century, the district of Washington Square was considered separate from Greenwich Village. In 1825, the Commercial Advertiser was writing that "Greenwich is no longer a country village. Such has been the growth of our city that the building of one block more will connect the two places" of Greenwich and New York. By 1850, the city had developed entirely around Greenwich Village such that
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#173279039479111036-615: The 64 new laws recommended by the Commission were legislated with the support of Governor William Sulzer . As a result of the fire, the American Society of Safety Professionals was founded in New York City on October 14, 1911. Harris and Blanck, after their acquittal, worked to rebuild their business, opening a factory at 16th Street and Fifth Avenue. In the summer of 1913, Blanck was once again arrested for locking
11214-558: The City of New York's right to transfer three plots of Department of Transportation-owned land to the university for constructing staging, which plaintiffs claimed required the consent of the state legislature. Ultimately, the Appellate Division of New York's Supreme Court ruled in the university's favor after a lower court blocked the expansion plan; however, so far, the university has only begun construction on 181 Mercer Street ,
11392-573: The East Side, by some magic of terror, that the plant of the Triangle Waist Company was on fire and that several hundred workers were trapped. Horrified and helpless, the crowds – I among them – looked up at the burning building, saw girl after girl appear at the reddened windows, pause for a terrified moment, and then leap to the pavement below, to land as mangled, bloody pulp. This went on for what seemed
11570-735: The Greenwich Village Society for Historic Preservation, including the former Bell Telephone Labs Complex (1861–1933), now Westbeth Artists' Housing , designated in 2011; the Silver Towers/University Village Complex (1967), designed by I.M. Pei and including the Picasso sculpture Portrait of Sylvette , designated in 2008; and three early 19th-century federal houses at 127, 129 and 131 MacDougal Street. Several contextual rezonings were enacted in Greenwich Village in recent years to limit
11748-621: The Judson Poets' Theater, located at Judson Memorial Church on the south side of Washington Square Park . The Village had a cutting-edge cabaret and music scene. The Village Gate , the Village Vanguard , and the Blue Note (since 1981) regularly hosted some of the biggest names in jazz . Greenwich Village also played a major role in the development of the folk music scene of the 1960s. Music clubs included Gerde's Folk City , The Bitter End , Cafe Au Go Go , Cafe Wha? , The Gaslight Cafe and The Bottom Line . Three of
11926-914: The Majority Leader of the Assembly, and Robert F. Wagner , the Majority Leader of the Senate, and this collaboration of machine politicians and reformers—also known as "do-gooders" or " goo-goos "—got results, especially since Tammany's chief, Charles F. Murphy , realized the goodwill to be had as champion of the downtrodden. The New York State Legislature then created the Factory Investigating Commission to "investigate factory conditions in this and other cities and to report remedial measures of legislation to prevent hazard or loss of life among employees through fire, unsanitary conditions, and occupational diseases." The Commission
12104-481: The Triangle Fire Memorial. The memorial includes a steel ribbon descending from the building, before splitting into two horizontal ribbons, twelve feet above street level, on the corner of the building. The ribbons are meant to evoke mourning ribbons, which were traditionally draped on building facades by communities in mourning. The horizontal ribbons list the names and ages of all 146 victims, with
12282-549: The Village after drinking at the White Horse Tavern on November 5, 1953. Off-Off-Broadway began in Greenwich Village in 1958 as a reaction to Off Broadway , and a "complete rejection of commercial theatre". Among the first venues for what would soon be called "Off-Off-Broadway" (a term supposedly coined by critic Jerry Tallmer of the Village Voice ) were coffeehouses in Greenwich Village, in particular,
12460-535: The Village and have fought to preserve its architectural and historic integrity. In the 1960s, Margot Gayle led a group of citizens to preserve the Jefferson Market Courthouse (later reused as Jefferson Market Library), while other citizen groups fought to keep traffic out of Washington Square Park, and Jane Jacobs , using the Village as an example of a vibrant urban community, advocated to keep it that way. Since then, preservation has been
12638-793: The Village's nightclub, theater, and coffeehouse scene during the 1950s, 1960s, and early 1970s. Many artists garnered critical acclaim, some before and some after, performed in the Village. This list includes Eric Andersen , Joan Baez , Jackson Browne , the Clancy Brothers and Tommy Makem , Richie Havens , Jimi Hendrix , Janis Ian , the Kingston Trio , the Lovin' Spoonful , Bette Midler , Liza Minnelli , Joni Mitchell , Maria Muldaur , Laura Nyro , Phil Ochs , Tom Paxton , Peter, Paul, and Mary , Carly Simon , Simon & Garfunkel , Nina Simone , Barbra Streisand , James Taylor , and
12816-551: The Village, most notably the monthly magazines American Heritage and Fortune and formerly also the citywide newsweekly the Village Voice . The National Audubon Society , having relocated its national headquarters from a mansion in Carnegie Hill to a restored and very green , former industrial building in NoHo , relocated to smaller but even greener LEED certified building at 225 Varick Street, on Houston Street near
12994-399: The Village. As one press critic put it in 2013, "For decades, New York University has waged architectural war on Greenwich Village." In recent years, the university has clashed most prominently with community groups such as the Greenwich Village Society for Historic Preservation over the construction of new NYU academic buildings and residence halls. During the design of Furman Hall in 2000,
13172-726: The Weavers , who also in Christmas 1949, played at the Village Vanguard . The annual Greenwich Village Halloween Parade , initiated in 1974 by Greenwich Village puppeteer and mask maker Ralph Lee , is the world's largest Halloween parade and America's only major Halloween nighttime parade, attracting more than 60,000 costumed participants, two million in-person spectators, and a worldwide television audience of over 100 million. The parade has its roots in New York's queer community. Greenwich Village again became important to
13350-422: The additional care. In economic theory, moral hazard is a situation in which the behavior of one party may change to the detriment of another after the transaction has taken place. For example, a person with insurance against automobile theft may be less cautious about locking their car because the negative consequences of vehicle theft are now (partially) the responsibility of the insurance company. A party makes
13528-538: The agent holds private information before the contract is created with the principal, whereas in the moral hazard model the agent is informed of the withheld information privately after the contract is created with the principal. According to contract theory moral hazard results from a situation in which a hidden action occurs. Bengt Holmström said this: It has long been recognized that a problem of moral hazard may arise when individuals engage in risk sharing under conditions such that their privately taken actions affect
13706-424: The agent. Secondly, the agent may be risk-neutral but wealth-constrained and so the agent cannot make a payment to the principal and there is a trade-off between providing incentives and minimizing the agent's limited-liability rent. Among the early contributors to the contract-theoretic literature on moral hazard were Oliver Hart and Sanford J. Grossman . In the meantime, the moral hazard model has been extended to
13884-462: The amount borrowers can spend with their cards because without such limits, borrowers may spend borrowed funds recklessly, leading to default. Securitization of mortgages in America started in 1983 at Salomon Brothers and where the risk of each mortgage passed to the next purchaser instead of remaining with the original mortgaging institution. These mortgages and other debt instruments were put into
14062-436: The amount of protection that would be provided in a world with perfect information. Economists distinguish moral hazard from adverse selection , another problem that arises in the insurance industry, which is caused by hidden information , rather than hidden actions . The same underlying problem of non-observable actions also affects other contexts besides the insurance industry. It also arises in banking and finance : if
14240-552: The anniversary of the fire to inscribe in chalk the names, ages, and causes of death of the victims in front of their former homes, often including drawings of flowers, tombstones, or a triangle. From July 2009 to the weeks leading up to the 100th anniversary, the Coalition served as a clearinghouse to organize some 200 activities as varied as academic conferences , films, theater performances, art shows, concerts, readings, awareness campaigns, walking tours , and parades that were held in and around New York City and in other cities across
14418-404: The area up to 14th Street, is part of a Historic District established by the New York City Landmarks Preservation Commission . The District's convoluted borders run no farther south than 4th Street or St. Luke's Place, and no farther east than Washington Square East or University Place. Redevelopment in that area is severely restricted, and developers must preserve the main façade and aesthetics of
14596-443: The associated costs. A moral hazard may occur where the actions of the risk-taking party change to the detriment of the cost-bearing party after a financial transaction has taken place. Moral hazard can occur under a type of information asymmetry where the risk-taking party to a transaction knows more about its intentions than the party paying the consequences of the risk and has a tendency or incentive to take on too much risk from
14774-523: The backgrounds of the victims. Another panel includes a description of the event and its impact, also written in English, Italian, and Yiddish. The memorial was officially unveiled on October 11, 2023, more than a century after the fire occurred. An additional vertical steel ribbon was installed in June 2024; it extends up the side of the building, dividing into two at the third floor, and eventually reaching
14952-589: The bohemian scene during the 1950s, when the Beat Generation focused its energies there. Fleeing from what they saw as oppressive social conformity, a loose collection of writers, poets, artists, and students (later known as the Beats ) and the Beatniks , moved to Greenwich Village, and to North Beach in San Francisco , in many ways creating the U.S. East Coast and West Coast predecessors, respectively, to
15130-607: The building housed the first architectural school in the United States. Soon after its completion in 1857, the building helped to make Greenwich Village central to the arts in New York City, drawing artists from all over the country to work, exhibit, and sell their art. In its initial years Winslow Homer took a studio there, as did Edward Lamson Henry , and many of the artists of the Hudson River School , including Frederic Church and Albert Bierstadt . From
15308-529: The building. The fire led to legislation requiring improved factory safety standards and helped spur the growth of the International Ladies' Garment Workers' Union (ILGWU), which fought for better working conditions for sweatshop workers. The Triangle Waist Company factory occupied the 8th, 9th, and 10th floors of the 10-story Asch Building on the northwest corner of Greene Street and Washington Place, just east of Washington Square Park , in
15486-702: The buildings during renovation. Most of the buildings of Greenwich Village are mid-rise apartments, 19th century row houses, and the occasional one-family walk-up, a sharp contrast to the high-rise landscape in Midtown and Downtown Manhattan . Politically, Greenwich Village is in New York's 10th congressional district . It is also in the New York State Senate 's 25th district, the New York State Assembly 's 66th district, and
15664-471: The cases of multiple periods and multiple tasks, both with risk-averse and risk-neutral agents. There are also models that combine hidden action and hidden information. Since there is no data on unobservable variables, it is quite difficult to be able to test directly the contract-theoretic moral hazard model, however there have been some successful indirect tests with field data. Direct tests of moral hazard theory are feasible in laboratory settings, using
15842-733: The centennial of the fire and to create a permanent public art memorial to honor its victims. The founding partners included Workers United , the New York City Fire Museum , New York University (the current owner of the building), Workmen's Circle , Museum at Eldridge Street , the Greenwich Village Society for Historic Preservation , the Lower East Side Tenement Museum , the Gotham Center for New York City History ,
16020-537: The clients would like to be protected. Economists argue that the inefficiency results from information asymmetry. If insurance companies could perfectly observe the actions of their clients, they could deny coverage to clients choosing risky actions (like smoking in bed or not wearing seat belts), allowing them to provide thorough protection against risk (fire or accidents) without encouraging risky behavior. However, since insurance companies cannot perfectly observe their clients' actions, they are discouraged from providing
16198-456: The conditions that make life unbearable. I can't talk fellowship to you who are gathered here. Too much blood has been spilled. I know from my experience it is up to the working people to save themselves. The only way they can save themselves is by a strong working-class movement. Others in the community, and in particular in the ILGWU, believed that political reform could help. In New York City,
16376-413: The cost of medical treatment that would not have occurred otherwise. Sometimes moral hazard is so severe that it makes insurance policies impossible. Coinsurance, co-payments, and deductibles reduce the risk of moral hazard by increasing the out-of-pocket spending of consumers, which decreases their incentive to consume. These methods work by increasing out-of-pocket expenses for consumers, thereby reducing
16554-412: The door in the factory during working hours. He was fined $ 20, which was the minimum amount the fine could be. In 1918, the two partners closed the Triangle Waist Company and went their separate ways. Harris resumed working as a tailor , while Blanck set up other companies with his brothers, the most prominent of which was Normandy Waist Company, which earned a modest profit. The last living survivor of
16732-455: The early 20th century, Greenwich Village was distinguished from the upper-class neighborhood of Washington Square—based on the major landmark of Washington Square Park or Empire Ward in the 19th century. Encyclopædia Britannica ' s 1956 article on "New York (City)" states (under the subheading "Greenwich Village") that the southern border of the Village is Spring Street , reflecting an earlier understanding. Today, Spring Street overlaps with
16910-461: The early morning hours of June 28, 1969, at the Stonewall Inn , 53 Christopher Street . Considered together, the demonstrations are widely considered to constitute the single most important event leading to the gay liberation movement and the modern fight for LGBTQ rights in the United States . On June 23, 2015, the Stonewall Inn was the first landmark in New York City to be recognized by
17088-505: The event of a catastrophic failure, a government bailout would only come after major losses for the company. So even if a bailout was expected it would not prevent the firm from taking losses. Second, there is some evidence that big banks were not expecting the crisis and thus were not expecting government bailouts, though the FCIC tried hard to contest this idea. Third, some have argued that negative externalities from corporate governance were
17266-711: The existing street plan, and many older, smaller streets had to be demolished. Unlike the streets of most of Manhattan above Houston Street, streets in the Village are typically named, not numbered. While some of the formerly named streets (including Factory, Herring and Amity Streets) are now numbered, they still do not always conform to the usual grid pattern when they enter the neighborhood. For example, West 4th Street runs east–west across most of Manhattan, but runs north–south in Greenwich Village, causing it to intersect with West 10th, 11th, and 12th Streets before ending at West 13th Street. A large section of Greenwich Village, made up of more than 50 northern and western blocks in
17444-577: The fact that the bohemian days of Greenwich Village are long gone, because of the extraordinarily high housing costs in the neighborhood. The artists fled to other New York City neighborhoods including SoHo , Tribeca , Dumbo , Williamsburg , and Long Island City . Nevertheless, residents of Greenwich Village still possess a strong community identity and are proud of their neighborhood's unique history and fame, and its well-known liberal live-and-let-live attitudes. Historically, local residents and preservation groups have been concerned about development in
17622-467: The factory were in attendance and had invited their children to the factory on that afternoon. The Fire Marshal concluded that the likely cause of the fire was the disposal of an unextinguished match or cigarette butt in a scrap bin containing two months' worth of accumulated cuttings. Beneath the table in the wooden bin were hundreds of pounds of scraps left over from the several thousand shirtwaists that had been cut at that table. The scraps piled up from
17800-503: The fire was Rose Freedman, née Rosenfeld, who died in Beverly Hills, California , on February 15, 2001, at the age of 107. She was two days away from her 18th birthday at the time of the fire, which she survived by following the company's executives and being rescued from the roof of the building. As a result of her experience, she became a lifelong supporter of unions. On September 16, 2019, U.S. Senator Elizabeth Warren delivered
17978-467: The firm. This move was criticized by former Fed Chair Paul Volcker and others as increasing moral hazard. Tyler Cowen concludes that "creditors came to believe that their loans to unsound financial institutions would be made good by the Fed – as long as the collapse of those institutions would threaten the global credit system." Fed Chair, Alan Greenspan , while conceding the risk of moral hazard, defended
18156-535: The first Black legal protest in America. All received parcels of land in what is now Greenwich Village, in an area that became known as the Land of the Blacks . The earliest known reference to the village's name as "Greenwich" dates back to 1696, in the will of Yellis Mandeville of Greenwich; however, the village was not mentioned in the city records until 1713. Sir Peter Warren began accumulating land in 1731 and built
18334-503: The first building in the planned 1.5-million-square-foot (140,000 m ) expansion southwards. For census purposes, the New York City government classifies Greenwich Village as part of the West Village neighborhood tabulation area. According to the 2010 United States Census , the population of West Village was 66,880, a change of −1,603 (−2.4%) from the 68,483 counted in 2000 . Covering an area of 583.47 acres (236.12 ha),
18512-423: The former Food & Maritime Trades High School at 208 West 13th Street since 1984. In 2006, the Village was the scene of an assault involving seven lesbians and a straight man that sparked appreciable media attention, with strong statements defending both sides of the case. On June 20, 2023, the intersection of Fifth Avenue and Washington Square North was officially renamed Edie Windsor and Thea Speyer Way at
18690-516: The founding of "The Independent Republic of Greenwich Village" on January 24, 1917). In 1924, the Cherry Lane Theatre was established. Located at 38 Commerce Street, it is New York City's oldest continuously running Off-Broadway theater. A landmark in Greenwich Village's cultural landscape, it was built as a farm silo in 1817, and also served as a tobacco warehouse and box factory before Edna St. Vincent Millay and other members of
18868-401: The four ZIP Codes that constitute the Village – 10011, 10012, 10003, and 10014 – were all ranked among the ten most expensive in the United States by median housing prices in 2014, according to Forbes , with residential property sale prices in the West Village neighborhood typically exceeding US$ 2,100/sq ft ($ 23,000/m ) in 2017. The neighborhood is bordered by Broadway to the east,
19046-576: The four members of the Mamas & the Papas met there. Guitarist and folk singer Dave Van Ronk lived there for many years. Village resident and cultural icon Bob Dylan by the mid-60s had become one of the world's foremost popular songwriters, and often developments in Greenwich Village would influence the simultaneously occurring folk rock movement in San Francisco and elsewhere, and vice versa. Dozens of other cultural and popular icons got their start in
19224-401: The frequent release of prisoners, sometimes as many as 50 a day. Since the prison was north of the New York City boundary at the time, being sentenced to Newgate became known as being "sent up the river". This term became popularized once prisoners started being sentenced to Sing Sing Prison , in the town of Ossining upstream of New York City. The oldest house remaining in Greenwich Village
19402-440: The full cost of medical services. Two types of behavior can change. One type is the risky behavior itself, resulting in a before the event moral hazard. Insured parties then behave in a more risky manner, resulting in more negative consequences that the insurer must pay for. For example, after purchasing automobile insurance, some may tend to be less careful about locking the automobile or choose to drive more, thereby increasing
19580-580: The future if those that take the risks come to believe that they will not have to carry the full burden of potential losses. Lending institutions need to take risks by making loans, and the riskiest loans usually have the potential for making the highest return. Taxpayers, depositors and other creditors often have to shoulder at least part of the burden of risky financial decisions made by lending institutions. Many have argued that certain types of mortgage securitization contribute to moral hazard. Mortgage securitization enables mortgage originators to pass on
19758-434: The golden age of bohemianism , Greenwich Village became famous for such eccentrics as Joe Gould (profiled at length by Joseph Mitchell ) and Maxwell Bodenheim , dancer Isadora Duncan , writer William Faulkner , and playwright Eugene O'Neill . Political rebellion also made its home here, whether serious ( John Reed ) or frivolous ( Marcel Duchamp and friends set off balloons from atop Washington Square Arch , proclaiming
19936-484: The groups to avoid future appeals, which included reducing the building to 9 stories and restoring the facades of two historic houses located on the site, the Judson House and a red-brick town house where Edgar Allan Poe once lived, which NYU reconstructed as they appeared in the 19th century. Another dispute arose during the construction of the 26-story Founders Hall, a residence hall planned to be constructed on
20114-419: The healthier air of Greenwich Village, and afterwards many stayed. The future site of Washington Square was a potter's field from 1797 to 1823 when up to 20,000 of New York's poor were buried here, and still remain. The handsome Greek revival rowhouses on the north side of Washington Square were built about 1832, establishing the fashion of Washington Square and lower Fifth Avenue for decades to come. Well into
20292-463: The hook if they went belly up [pre-crisis], only their shareholders and other creditors were. Finance companies thus had little to discourage them from growing as aggressively as possible, even if that meant lowering or winking at traditional lending standards." Moral hazard can also occur with borrowers. Borrowers may not act prudently (in the view of the lender) when they invest or spend funds recklessly. For example, credit card companies often limit
20470-413: The incentive for the insured to engage in excessive consumption. For example, by requiring individuals to pay a portion of their health care costs through coinsurance, copayment, or deductibles, insurance providers can give people an incentive to consume less health care and avoid making unnecessary claims. This can help reduce moral hazard by aligning the interests of the insured and the insurer. Consider
20648-421: The increased pace of development in the 1990s. The Greenwich Village Society for Historic Preservation (GVSHP), a nonprofit organization dedicated to the architectural and cultural character and heritage of the neighborhood, successfully proposed new districts and individual landmarks to the LPC. Those include: The Landmarks Preservation Commission designated as landmarks several individual sites proposed by
20826-403: The individual. In this case, the individual will have a price of $ 0 for the health care and thus will consume 20 units. The price will still be $ 10, but the insurance company would be the one bearing the costs. This example shows numerically how moral hazard could occur with health insurance. The individual consumes more health care than the equilibrium quantity because they don't bear the cost of
21004-515: The insurance-industry literature with the largely positive interpretations found within the economic literature. Often what is described as "moral hazard[s]" in the insurance literature is upon closer reading, a description of the closely related concept, adverse selection . In 1998, William J. McDonough , head of the New York Federal Reserve, helped the counterparties of Long-Term Capital Management avoid losses by taking over
21182-411: The intention of its first warden, Quaker prison reformer Thomas Eddy , was to provide a rational and humanitarian place for retribution and rehabilitation, the prison soon became an overcrowded and pestilent place, subject to frequent riots by the prisoners which damaged the buildings and killed some inmates. By 1821, the prison, designed for 432 inmates, held 817 instead, a number made possible only by
21360-511: The last time the bin was emptied, coupled with the hanging fabrics that surrounded it; the steel trim was the only thing that was not highly flammable. Although smoking was banned in the factory, cutters were known to sneak cigarettes, exhaling the smoke through their lapels to avoid detection. A New York Times article suggested that the fire had been started by the engines running the sewing machines . A series of articles in Collier's noted
21538-592: The late 19th century until the present, the Hotel Albert has served as a cultural icon of Greenwich Village. Opened during the 1880s and originally located at 11th Street and University Place, called the Hotel St. Stephan and then, after 1902, called the Hotel Albert while under the ownership of William Ryder, it served as a meeting place, restaurant and dwelling for several important artists and writers from
21716-415: The late 19th century well into the 20th century. After 1902, the owner's brother Albert Pinkham Ryder lived and painted there. Some other noted guests who lived there include: Augustus St. Gaudens , Robert Louis Stevenson , Mark Twain , Hart Crane , Walt Whitman , Anaïs Nin , Thomas Wolfe , Robert Lowell , Horton Foote , Salvador Dalí , Philip Guston , Jackson Pollock , and Andy Warhol . During
21894-437: The letters and numbers formed as holes in the steel. For married women, both their birth names and married names are included, in part to highlight the family connections between victims. Under the ribbon is a reflective panel, allowing visitors to see the sky through the letters and numbers on the ribbon. The reflective panel also contains quotes from eyewitnesses about the event, in English, Italian, and Yiddish , reflecting
22072-530: The library, I ran out to see what was happening, and followed crowds of people to the scene of the fire. A few blocks away, the Asch Building at the corner of Washington Place and Greene Street was ablaze. When we arrived at the scene, the police had thrown up a cordon around the area and the firemen were helplessly fighting the blaze. The eighth, ninth, and tenth stories of the building were now an enormous roaring cornice of flames. Word had spread through
22250-554: The many Manhattan properties that Gertrude Vanderbilt Whitney and her husband owned, Gertrude Whitney established the Whitney Studio Club at 8 West 8th Street in 1914, as a facility where young artists could exhibit their works. By the 1930s it had evolved into her greatest legacy, the Whitney Museum of American Art , on the site of today's New York Studio School of Drawing, Painting and Sculpture . The Whitney
22428-494: The modern, newer SoHo neighborhood designation, while the modern Encyclopædia Britannica cites the southern border as Houston Street. As Greenwich Village was once a rural, isolated hamlet to the north of the 17th century European settlement on Manhattan Island , its street layout is more organic than the planned grid pattern of the 19th century grid plan (based on the Commissioners' Plan of 1811 ). Greenwich Village
22606-612: The most famous courts, is "The Cage", officially known as the West Fourth Street Courts . Sitting atop the West Fourth Street–Washington Square station at Sixth Avenue, the courts are used by basketball and American handball players from across the city. The Cage has become one of the most important tournament sites for the citywide " Streetball " amateur basketball tournament. Since 1975, New York University's art collection has been housed at
22784-767: The nation's first racially integrated nightclub , when Café Society was opened in 1938 at 1 Sheridan Square by Barney Josephson . Café Society showcased African American talent and was intended to be an American version of the political cabarets that Josephson had seen in Europe before World War I . Notable performers there included: Pearl Bailey , Count Basie , Nat King Cole , John Coltrane , Miles Davis , Ella Fitzgerald , Coleman Hawkins , Billie Holiday , Lena Horne , Burl Ives , Lead Belly , Anita O'Day , Charlie Parker , Les Paul and Mary Ford , Paul Robeson , Kay Starr , Art Tatum , Sarah Vaughan , Dinah Washington , Josh White , Teddy Wilson , Lester Young , and
22962-410: The nation, including San Francisco , Los Angeles , Chicago , Minneapolis , Boston , and Washington, D.C. The ceremony, which was held in front of the building where the fire took place , was preceded by a march through Greenwich Village by thousands of people, some carrying shirtwaists—women's blouses—on poles, with sashes commemorating the names of those who died in the fire. Speakers included
23140-403: The neighborhood had a population density of 114.6/acre (73,300/sq mi; 28,300/km ). The racial makeup of the neighborhood was 80.9% (54,100) White , 2% (1,353) African American , 0.1% (50) Native American , 8.2% (5,453) Asian , 0% (20) Pacific Islander , 0.4% (236) from other races , and 2.4% (1,614) from two or more races. Hispanic or Latino residents of any race were 6.1% (4,054) of
23318-654: The ninth floor, where many of the workers were trapped and from which many jumped. A memorial "of the Ladies Waist and Dress Makers Union Local No 25" was erected in Mt. Zion Cemetery in Maspeth, Queens (40°44'2" N 73°54'11" W). It is a series of stone columns holding a large cross beam. Much of the writing is no longer legible due to erosion. Three plaques on the southeast corner of the Brown Building commemorate
23496-517: The north side of Houston Street and around Bleecker Street and Carmine Street. Many of them being immigrants from Naples and Sicily . Up until the late 2000s, the village was home to one of the largest Italian speaking communities in the United States. Greenwich Village includes several collegiate institutions. Since the 1830s, New York University (NYU) has had a campus there. In 1973 NYU moved from its campus in University Heights in
23674-406: The pair's trial began on December 4, 1911. Max Steuer , counsel for the defendants, managed to destroy the credibility of one of the survivors, Kate Alterman, by asking her to repeat her testimony a number of times, which she did without altering key phrases. Steuer argued to the jury that Alterman and possibly other witnesses had memorized their statements and might even have been told what to say by
23852-448: The paperwork exists and is in good order. It has been suggested that this may have caused the subprime mortgage crisis. Brokers, who were not lending their own money, pushed risk onto the lenders. Lenders, who sold mortgages soon after underwriting them, pushed risk onto investors. Investment banks bought mortgages and chopped up mortgage-backed securities into slices, some riskier than others. Investors bought securities and hedged against
24030-545: The part of an insured party). Dembe and Boden point out, however, that prominent mathematicians who studied decision-making in the 18th century used "moral" to mean "subjective", which may cloud the true ethical significance in the term. The concept of moral hazard was the subject of renewed study by economists in the 1960s, beginning with economist Ken Arrow, and did not imply immoral behavior or fraud. Economists use this term to describe inefficiencies that can occur when risks are displaced or cannot be fully evaluated, rather than
24208-425: The percentage of residents who have difficulty paying their rent, is 38% in Greenwich Village and SoHo, compared to the boroughwide and citywide rates of 45% and 51%, respectively. Based on this calculation, as of 2018 , Greenwich Village and SoHo are considered high-income relative to the rest of the city and not gentrifying . Throughout the 1930s, many Italian-Americans starting leaving Little Italy and moved on
24386-410: The perspective of the party with less information. One example is a principal–agent approach (also called agency theory), where one party, called an agent , acts on behalf of another party, called the principal . However, a principal–agent problem can occur when there is a conflict of interest between the agent and principal. If the agent has more information about his or her actions or intentions than
24564-541: The police lines. Although early estimates of the death toll ranged from 141 to 148, almost all modern references agree that 146 people died as a result of the fire: 123 women and girls and 23 men. Most victims died of burns , asphyxiation , blunt impact injuries , or a combination of the three. The first person to jump was a man, and another man was seen kissing a young woman at a window before they both jumped to their deaths. Bodies of victims were taken to Charities Pier (also called Misery Lane), located at 26th Street and
24742-572: The policy to orderly unwind Long-Term Capital by saying the world economy is at stake. Greenspan had himself been accused of creating wider moral hazard in markets by using the Greenspan put . Economist Paul Krugman described moral hazard as "any situation in which one person makes the decision about how much risk to take, while someone else bears the cost if things go badly." Financial bailouts of lending institutions by governments, central banks or other institutions can encourage risky lending in
24920-425: The population. Greenwich Village is home to a significant concentration of same-sex couples. The entirety of Community District 2, which comprises Greenwich Village and SoHo, had 91,638 inhabitants as of NYC Health 's 2018 Community Health Profile, with an average life expectancy of 85.8 years. This is higher than the median life expectancy of 81.2 for all New York City neighborhoods. Most inhabitants are adults:
25098-419: The presence of information asymmetry, where one party possesses more information than the other. For instance, within an employment relationship, an employee may engage in risky behaviour with the understanding that any negative consequences will be absorbed by their employer. To mitigate the moral hazard, firms may implement various mechanisms such as performance-based incentives, monitoring and screening to align
25276-438: The principal then the agent may have an incentive to act too riskily (from the viewpoint of the principal) if the interests of the agent and the principal are not aligned. According to research by Dembe and Boden, the term dates back to the 17th century and was widely used by English insurance companies by the late 19th century. Early usage of the term carried negative connotations, implying fraud or immoral behavior (usually on
25454-424: The probability distribution of the outcome. Moral hazard can be divided into two types when it involves asymmetric information (or lack of verifiability) of the outcome of a random event. An ex ante moral hazard is a change in behavior prior to the outcome of the random event, whereas ex post involves behavior after the outcome. For instance, in the case of a health insurance company insuring an individual during
25632-458: The prosecutors. The prosecution charged that the owners knew that the exit doors were locked at the time in question. The investigation found that the locks were intended to be locked during working hours based on the findings from the fire, but the defense stressed that the prosecution failed to prove that the owners knew that. The jury acquitted the two men of first- and second-degree manslaughter, but they were found liable of wrongful death during
25810-405: The rails of his elevator buckled under the heat. Some victims pried the elevator doors open and jumped into the empty shaft, trying to slide down the cables or to land on top of the car. The weight and impacts of these bodies warped the elevator car and made it impossible for Zito to make another attempt. William Gunn Shepherd , a reporter at the tragedy, would say, "I learned a new sound that day,
25988-418: The relationship of agents and principals, which is known as the principal-agent problem . The theory is subdivided into two categories: (1) the moral hazard model and; (2) the adverse selection model. To summarise the latter, adverse selection arises when two parties hold unequal or asymmetric information. In the instance of contract theory (which encompasses agency theory), in the adverse selection model
26166-447: The required third staircase—a flimsy and poorly anchored iron structure that may have already been broken before the fire. It soon twisted and collapsed from the heat and overload, spilling about 20 victims nearly 100 feet (30 m) to their deaths on the concrete pavement below. The remainder of the victims jumped to their deaths to escape the fire or were eventually overcome by smoke and flames. The fire department arrived quickly but
26344-598: The risk of default and prepayment, pushing those risks further along. In a purely capitalist scenario, the last one holding the risk (like a game of musical chairs ) is the one who faces the potential losses. In the sub-prime crisis, however, national credit authorities (the Federal Reserve in the US) assumed the ultimate risk on behalf of the citizenry at large. Others believe that financial bailouts of lending institutions do not encourage risky lending behavior since there
26522-513: The risk of theft or an accident for the insurer. After purchasing fire insurance, some may tend to be less careful about preventing fires (say, by smoking in bed or neglecting to replace the batteries in fire alarms). A further example has been identified in flood risk management in which it is proposed that the possession of insurance undermines efforts to encourage people to integrate flood protection and resilience measures in properties exposed to flooding. A second type of behavior that may change
26700-456: The risk that the mortgages they originate might default and not hold the mortgages on their balance sheets and assume the risk. In one kind of mortgage securitization, known as "agency securitizations," default risk is retained by the securitizing agency that buys the mortgages from originators. These agencies thus have an incentive to monitor originators and check loan quality. "Agency securitizations" refer to securitizations by either Ginnie Mae ,
26878-466: The risk to banks' balance sheets arising from financial instrument valuation uncertainties. A row of regulatory documents has been issued, providing detailed prudential requirements that have many points of contact with the accounting rules and have the indirect effect of curbing the incentives for moral hazard by limiting the discretion left to banks in valuating financial instruments. Many scholars and journalists have argued that moral hazard played
27056-405: The site of St. Ann's Church at 120 East Twelfth Street. Amidst protests of the demolition of the church, the university decided to maintain and restore the facade and steeple of the building, parts of which were deteriorating or missing, and it now stands freely directly in front of the 12th Street entrance of the building. Further controversy also arose over the height of the building, as well as how
27234-552: The site of which is adjacent to the Judson Memorial Church , community groups sued the university, claiming the construction of a 13-story tower on the site would "loom behind the campanile of [the church]" and "mar the historic silhouette of Greenwich Village as viewed from Washington Square Park". Despite a justice in State Supreme Court dismissing the case, the university agreed to a settlement with
27412-551: The size and height of allowable new development in the neighborhood, and to encourage the preservation of existing buildings. The following were proposed by the GVSHP and passed by the City Planning Commission : New York University and Greenwich Village preservationists have frequently become embroiled in conflicts between the university's campus expansion efforts and the preservation of the scale and character of
27590-484: The stairway door key had already escaped by another route. Dozens of employees escaped the fire by going up the Greene Street stairway to the roof. Other survivors were able to jam themselves into the elevators for as long as they continued to operate. Within three minutes of the fire starting, the Greene Street stairway became unusable in both directions. Terrified employees crowded onto the single exterior fire escape—which city officials had allowed Asch to erect instead of
27768-546: The state level by New York Governor Kathy Hochul , in honor of the Greenwich Village plaintiffs who prevailed at the United States Supreme Court in 2013, in finding the Defense of Marriage Act , which had limited the definition of marriage as being valid strictly between one man and one woman, to be unconstitutional . Since the end of the 20th century, many artists and local historians have mourned
27946-440: The state's labor laws, making New York State "one of the most progressive states in terms of labor reform." New laws mandated better building access and egress, fireproofing requirements , the availability of fire extinguishers , the installation of alarm systems and automatic sprinklers , and better eating and toilet facilities for workers, and limited the number of hours that women and children could work. From 1911 to 1913, 60 of
28124-702: The subprime mortgage crisis. A 2017 report by the Basel Committee on Banking Supervision , an international regulator for the banking sector, noted that the accounting rules ( IFRS # 9 and 13 in particular) leave entities significant discretion in determining financial instrument fair value and identified this discretion as a potential source of moral hazard: "The evidence consistent with accounting discretion as contributing to moral hazard behavior indicates that (additional) prudential valuation requirements may be justified." Banking regulators have taken actions to limit discretion and reduce valuation risk , i.e.
28302-404: The tools of experimental economics. In such a setup, Hoppe and Schmitz (2018) have corroborated central insights of moral hazard theory. In the field of managerial economics, moral hazard refers to a situation in which an individual or entity engages in risky behaviour due to the knowledge that the costs associated with such behaviour will be borne by another party. This phenomenon often arises in
28480-535: The two were no longer considered separate. Greenwich Village historically was known as an important landmark on the map of American bohemian culture in the early and mid-20th century. The neighborhood was known for its colorful, artistic residents and the alternative culture they propagated. Due in part to the progressive attitudes of many of its residents, the Village was a focal point of new movements and ideas, whether political, artistic, or cultural. This tradition as an enclave of avant-garde and alternative culture
28658-457: The university would integrate the church's facade into the building's uses; however, in 2006, NYU began construction and the new dorm was completed in December 2008. In recent years, the most conflict has arisen over the proposed NYU 2031 plan, which the university released in 2010 as its plan for long-term growth, both within and outside of Greenwich Village. This included a court battle over
28836-425: The venture failed when it was profitable) is ex post moral hazard. According to Hart and Holmström (1987), moral hazard models can be subdivided in models with hidden action and models with hidden information. In the former case, after the contract has been signed the agent chooses an action (such as an effort level) that cannot be observed by the principal. In the latter case, after the contract has been signed there
29014-473: The victims were recent Italian or Jewish immigrant women and girls aged 14 to 23; of the victims whose ages are known, the oldest victim was 43-year-old Providenza Panno and the youngest were 14-year-olds Kate Leone and Rosaria "Sara" Maltese. The factory was located on the 8th, 9th, and 10th floors of the Asch Building, which had been built in 1901. Later renamed the " Brown Building ", it still stands at 23–29 Washington Place near Washington Square Park , on
29192-452: The women and men who lost their lives in the fire. Films and television Music Theatre and dance Greenwich Village Greenwich Village , or simply the Village , is a neighborhood on the west side of Lower Manhattan in New York City, bounded by 14th Street to the north, Broadway to the east, Houston Street to the south, and the Hudson River to the west. Greenwich Village also contains several subsections, including
29370-496: The years leading up to the subprime mortgage crisis , private label securitizations grew as a share of overall mortgage securitization by purchasing and securitizing low-quality, high-risk mortgages. Agency Securitizations appear to have somewhat lowered their standards, but Agency mortgages remained considerably safer than mortgages in private-label securitizations and performed far better in terms of default rates. Economist Mark Zandi of Moody's Analytics described moral hazard as
29548-679: Was able to identify each of them by name. Those six victims were buried together in the Cemetery of the Evergreens in Brooklyn. Originally interred elsewhere on the grounds, their remains now lie beneath a monument to the tragedy, a large marble slab featuring a kneeling woman. The company's owners, Max Blanck and Isaac Harris—both Jewish immigrants—who survived the fire by fleeing to the building's roof when it began, were indicted on charges of first- and second-degree manslaughter in mid-April;
29726-420: Was accidentally detonated, killing three of their members ( Ted Gold , Terry Robbins , and Diana Oughton ). The Village has been a center for movements that challenged the wider American culture, most notably its seminal role in sparking the gay liberation movement. The Stonewall riots were a series of spontaneous, violent protests by members of the gay community against a police raid that took place in
29904-499: Was allowed to keep the 18th century street pattern of what is now called the West Village: areas that were already built up when the plan was implemented, west of what is now Greenwich Avenue and Sixth Avenue , resulted in a neighborhood whose streets are dramatically different, in layout, from the ordered structure of the newer parts of Manhattan. Many of the neighborhood's streets are narrow and some curve at odd angles. This
30082-469: Was chaired by Wagner and co-chaired by Al Smith. They held a series of widely publicized investigations around the state, interviewing 222 witnesses and taking 3,500 pages of testimony. They hired field agents to do on-site inspections of factories. They started with the issue of fire safety and moved on to broader issues of the risks of injury in the factory environment. Their findings led to thirty-eight new laws regulating labor in New York state, and gave them
30260-470: Was established during the 19th century and continued into the 20th century, when small presses, art galleries, and experimental theater thrived. In 1969, enraged members of the gay community, in search for equality, started the Stonewall riots . The Stonewall Inn was later recognized as a National Historic Landmark for having been the location where the gay rights movement originated. On June 27, 2019,
30438-785: Was followed by a gentrification process in the 1980s. There are numerous historic buildings in the neighborhood including Emma Lazarus 's former residence on West 10th Street and Edward Hopper 's former studio (now the NYU Silver School of Social Work). The historic Washington Square Park is the center and heart of the neighborhood. Additionally, the Village has several other, smaller parks: Christopher, Father Fagan, Little Red Square, Minetta Triangle, Petrosino Square, and Time Landscape. There are also city playgrounds, including DeSalvio Playground , Minetta, Thompson Street , Bleecker Street, Downing Street, Mercer Street , Cpl. John A. Seravelli, and William Passannante Ballfield. One of
30616-519: Was formerly considered part of the Lower East Side and has never been considered a part of Greenwich Village. The western part of Greenwich Village is known as the West Village ; the dividing line of its eastern border is debated but commonly cited as Seventh Avenue or Sixth Avenue . The Far West Village is another sub-neighborhood of Greenwich Village that is bordered on its west by the Hudson River and on its east by Hudson Street . Into
30794-686: Was founded in 1931, as an answer to the Museum of Modern Art , founded 1928, and its collection of mostly European modernism and its neglect of American Art . Gertrude Whitney decided to put the time and money into the museum after the New York Metropolitan Museum of Art turned down her offer to contribute her twenty-five-year collection of modern art works. In 1936, the renowned Abstract Expressionist artist and teacher Hans Hofmann moved his art school from East 57th Street to 52 West 9th Street. In 1938, Hofmann moved again to
30972-407: Was not suspected in this case. A bookkeeper on the 8th floor was able to warn employees on the 10th floor via telephone, but there was no audible alarm and no way to contact staff on the 9th floor. According to survivor Yetta Lubitz, the first warning of the fire on the 9th floor arrived at the same time as the fire itself. Although the floor had a number of exits, including two freight elevators,
31150-526: Was renamed the Christopher Street–Stonewall station on the same day. The Tenth Street Studio Building was situated at 51 West 10th Street, between Fifth and Sixth Avenues . The building was commissioned by James Boorman Johnston and designed by Richard Morris Hunt . Its innovative design soon represented a national architectural prototype, and featured a domed central gallery, from which interconnected rooms radiated. Hunt's studio within
31328-434: Was sitting at one of the reading tables in the old Astor Library. ... It was a raw, unpleasant day and the comfortable reading room seemed a delightful place to spend the remaining few hours until the library closed. I was deeply engrossed in my book when I became aware of fire engines racing past the building. By this time I was sufficiently Americanized to be fascinated by the sound of fire engines. Along with several others in
31506-473: Was sounded in 1911, hundreds of bells rang out in cities and towns across the nation. For this commemorative act, the Remember the Triangle Fire Coalition organized hundreds of churches, schools, fire houses, and private individuals in the New York City region and across the nation. On its website, the Coalition maintains a national map denoting each of the bells that rang that afternoon. The Coalition launched
31684-412: Was unable to stop the flames, as the department's ladders were long enough to reach only as high as the 7th floor. The fallen bodies and falling victims also made it difficult for the fire department to approach the building. Elevator operators Joseph Zito and Gaspar Mortillaro saved many lives by traveling three times up to the 9th floor for passengers, but Mortillaro was eventually forced to give up when
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