Saturday, March 20, 2010

Words of Wisdom on Markets

"The market is not perfect. It is run by humans who make mistakes. But the same humans run government where they make different, often more costly, mistakes for which the public pays.

Capitalists make errors, but left alone, markets punish such errors."

~
Economist Alan Meltzer writing in the Wall Street Journal, via Scott Grannis

4 Comments:

At 3/20/2010 8:34 PM, Blogger misterjosh said...

Markets make errors and states make errors.

The difference is that markets are made up of many individuals, some of whom are ALREADY going in a better direction. These individuals are successful and are quickly imitated.

States on the other hand are often monolithic in thought - many leaders surround themselves with yes-people, or don't listen to their critics. States often double down on a bad strategy, thinking they must not be wrong.

Don't you love it when people say the same thing you just said & don't actually add anything to the conversation? My girlfriend does that alot. :)

 
At 3/21/2010 8:13 AM, Anonymous Rand said...

If a business makes mistakes, it goes out of business.

If a government makes mistakes, it raises taxes.

 
At 3/21/2010 9:37 AM, Anonymous Anonymous said...

So when are the arrogant bank CEO's who keep giving themselves huge bonuses while their shareholders lose value and their banking practices send the country into a recession going to be punished by the markets? I would pay to see that. So far, name a single one who has even been prosecuted (I mean, besides the former head of the NASDAQ).

 
At 3/21/2010 11:11 AM, Anonymous Anonymous said...

So when are the arrogant bank CEO's ... going to be punished by the markets? I would pay to see that. So far, name a single one who has even been prosecuted ...



Talk to the former CEO's of Lehman, Bear Stearns, WaMu, AIG, etc., etc. As for prosecutions, several have been and the former execs of Lehman are still under investigation.

Now, when Barney Frank, Maxine Waters, Chris Dodd, Andrew Cuomo and the rest of the left-wing vermin who were really responsible for this fiasco are indicted call me.

 

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