This is a fairly straight forward question. I am under the impression that this is bad. This is why you don't see many Moishe Abromowitz, III.
Why is this bad, and why isn't that practice carried thru out of Judaism?
Naming children after the living is only discouraged among Ashkenazi Jews; among Sefardim it's not uncommon.
The reasons why Ashkenazim don't are: (From Chabad.org)
Sources are brought at the bottom of that page.
For more information, check out those two links.
Among Ashkenazim it is generally regarded as an 'Ayin Hara' (Evil Eye). Among Sephardim it is the opposite - it is regarded as a way to confuse the angel of death, because he cannot take the wrong person.
(Source: several Sephardim I've spoken to about the subject)