Wednesday, November 26, 2008

Best Explanation in One Sentence - Mises Economics Blog

Whether you agree or not, this line is so awesome I have to include it...

Best Explanation in One Sentence - Mises Economics Blog:
"'If the money is used to prop up failing companies, that's particularly bad since it is an attempt to override market realities, an attempt that is about as successful as trying to repeal gravity by throwing things up in the air.'"
And it does serve as a good reminder throwing good money after bad is not an answer. Changes to prevent the same problems from happening again must be made or else the bailouts will create more problems (notably inflation, dwelling deficits, and a worsened morale hazard problem).

1 comment:

yuki said...

I'm looking forward to the next update.