profligacy

Having a characteristic of whimsical spending, without paying regard to economy.

Gray Davis' profligacy once-thriving state of California into the ground

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profligacy

–noun
a)1. shameless dissoluteness.
2. reckless extravagance.
3. great abundance.

b) 1. license

source: dictionary.com

(E1) At the 2/11/10 summit, the European Union finance ministers considered how to help Greece avoid defaulting on their debts, given its recent financial crisis, and a clear-cut solution was not yet found.
Economist magazine mentions,
". . .only the basic elements of a possible backstop for Greece had emerged. Pride is at stake, so it will be a 'European solution', with the IMF limited to an advisory role. It will be a joint effort led by France and a somewhat reluctant Germany, the country with the deepest pockets. Berlin frets that a rescue will only encourage further profligacy."
source: 2/11/10 issue Economist magazine

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(E2) In the U.S., filing bankruptcy wipe out debts of companies and individuals when 'things get really bad'. Do you think the forgoing of responsibility here of paying one's debts encourages profligacy? Or, do the ramifications of filing deter enough, for the most part? (Filing bankruptcy has consequences. For example, it makes it difficult to buy a new home, because record of it may stay on one's credit report for about 7 years. It has poor effect on the person's credit. Buying a new car and a car loan may also be more difficult with a lower credit rating.)

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