Niall Ferguson's "The Ascent of Money" discusses how the individuals managing Savings and Loans found themselves in a risky situation where they had little to lose. This scenario illustrates a phenomenon known as moral hazard, where parties may take greater risks because they don't bear the full consequences of their actions. When those in charge feel insulated from the fallout of their decisions, they may engage in reckless behavior that can lead to financial instability.

This concept highlights the importance of accountability and the potential dangers of misaligned incentives in financial systems. The lack of personal stakes for Savings and Loans executives contributed to a broader crisis, emphasizing how critical it is for decision-makers to have some level of personal exposure to the risks they undertake. Ferguson's exploration clarifies how the actions of a few can impact the financial health of an entire sector, underlining the complex dynamics of risk and reward in the economy.