[ExI] AIG Bail out

[Stathis Papaioannou]

2008/9/21 Lee Corbin <lcorbin at rawbw.com>:

> Waves of optimism or pessimism *are* going to sweep through
> the traders now and then, and I doubt if anyone can suggest a
> solution to this part of the "business cycle" which is entirely an
> element of human psychology.

This is essentially the idea behind attempts to manipulate the markets
via monetary policy, fiscal policy and financial regulation. It might
not eliminate boom and bust cycles, but it can attenuate them. I
understand that you think this is a bad idea, but I don't understand
why you seem to think that it is *necessarily* a bad idea. It's like
claiming that natural selection can never be improved upon by medicine
or engineering, and that even to try would invite disaster.



-- 
Stathis Papaioannou