Enough times that we should really think about returning it as we probably have a massive late fee at Blockbuster by now.
I agree with your comment on what a "rational" reaction would be, but that would be rational only if the market participants were educated on free market economics AND if the market participants were moralistic enough to refuse bailout money. Without the second qualification, the rational thing to do could still be to pump the market higher knowing everything would be priced in devalued currency, or easy money, at least temporarily. Otherwise, the market is failing as a "discounting" mechanism.
The sentiment after a big government intervention seems to always be, "The market is never going down again, THEY won't let it!"
ReplyDeleteAnd then it does, and everyone is caught with their dick in their hands.
And there hasn't even been a government intervention!!
ReplyDeleteJust empty talk!
How many times have we seen this movie since 2007?
Before this depression is over, I'm waiting for investors to PANIC when a government intervention is announced.
ReplyDeleteThat would be a more rational reaction.
Enough times that we should really think about returning it as we probably have a massive late fee at Blockbuster by now.
ReplyDeleteI agree with your comment on what a "rational" reaction would be, but that would be rational only if the market participants were educated on free market economics AND if the market participants were moralistic enough to refuse bailout money. Without the second qualification, the rational thing to do could still be to pump the market higher knowing everything would be priced in devalued currency, or easy money, at least temporarily. Otherwise, the market is failing as a "discounting" mechanism.