[ExI] Greed + Incompetence + A Belief in Market Efficiency =Disaster

painlord2k at libero.it painlord2k at libero.it
Fri Jan 30 16:57:38 UTC 2009

Il 30/01/2009 5.19, spike ha scritto:

>> [mailto:extropy-chat-bounces at lists.extropy.org] On Behalf Of BillK

>> The believers in efficient 'free markets' as the answer to
>> everything seem to be having a hard time of it these days.>  BillK

> On the contrary BillK.  The problem was caused by insufficient market
> freedom.  Government interference in the free market caused a crisis.  Now
> the government is proposing the solution is still more government
> interference.  It will fail of course.  My prediction is that the latest
> stimulus package will not stimulate, but rather leave the US under a
> crushing debt.

I'm Italian, I live in Italy, I saw this many times.
The government spent its way out of social political troubles (the '70 
and '80) and left a huge debts (we are around 110% of the GNP now).

They had many (near all) nationalized industries that were unproductive 
(but closing them would be politically damaging) and many private were 
subsided. At the end they were forced to sell them for a pittance or 
closing them.

It is, frankly, humorous the fact that they are now under the menace of 
60-300 K unemployed if the car sector go belly up, after all the money 
and help they gave to the FIAT in the last 40 years.
All the governments are thinking like a herd.
Germany, USA, France, Italy all they want help/bail out their car sector 
so it will survive the crisis. The problem is overproduction but if they 
all do the same, the overproduction will continue.

So, herd mentality is not only in the market, as BillK said, but also in 
the government.


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