In his book, The Secret Knowledge, David Mamet gives a brief and apt explanation of the economic term moral hazard, which played a key role in causing the financial crisis.
This is from a footnote on page 187 (emphasis added):
Is it not evident that any organization believing itself to be “too big to fail,” will more likely, indeed, inevitably make disastrous decisions? Why should it not–it is Too Big to Fail.
We all know people who (and perhaps have experienced this of ourselves), at one time or another, began to believe that their own s**t did not stink. And we all know how that story ended. Not well.
Our last financial crises could be called the my-s**t-don’t-stink crisis.
Also, we should remember how those stories end whenever our “experts”, politicians and economists tell us that such-and-such an industry or company is too important and cannot be allowed to fail (though it usually already has, and few people recognize it yet).