Ruchir Sharma said that bailouts hurt competitiveness. Moral hazard is a big problem. Sharma said, "Moral hazard occurs when people take on risky situations because they are confident they will be saved if they fail. It's a major problem. Sharma concluded, "We must find a solution to allow failing companies to fail. We'll never be able to break out of the bailout cycle if we don't find a way to let failing companies fail.