My uncle likes to say, “The market always wins.” For believers in big government who may not understand this neat little phrase I will explain with an untidy big phrase:
No matter how much government distorts the market with tax credits, subsidies, bailouts, etc., the market will eventually bring the financial system back to equilibrium. Or until the market collapses under a crushing bureaucratic weight.
Case in point: Apparently the sham called a stress test of European banks has done nothing but stress the Euro. It looks like the market continues to win.
And that is just as well. The alternative is for the market to totally collapse.
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