‘Market corrections’ have a valuable place. It’s hardly axiomatic that stock-market-numbers going up actually means a better economy(especially for those who don’t own any stock); but the trouble arises when the costs of the adjustment are transferred away from those responsible for the bubble, while the gains stay with them. If we were talking about filthy poor people, we’d call it ‘egregious moral hazard’. Since we aren’t, it’s just a necessary and prudent measure to protect the economy by ensuring that no important AIG counter parties are left behind.
Aaaand that is just the main problem.
I wish there was an alternative to a system that relies on what stock trader’s feng shui, horoscope or acid trip tell him to do.
Undoubtedly. Well said.
I’m not sure about feng shui; but the effect of the home team winning the big game has, chillingly, been documented. “Homo Economicus” indeed…
Well, he wouldn’t risk swimming the Yangtse, for one thing.
All that was missing was the shadow of a gun just off-camera pointing at the guy, and maybe an ISIS/Boko Haram flag in the background.
Given how few Chinese women are having sex with Mao, I would say he’d be very opposed.
That tells me that they’re based on shifting sand rather than on anything of any real substance.
The Gang of Four – China thinks they’re a Western band.
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