Obviously, "Free" Market is an oxymoron. The only free market is war and war is win at all costs, no holds barred, winner take all contests. Markets regulating themselves is almost as disingenuous a phrase, since in retrospect, they didn't. American automakers just received a bailout from Washington while their Japanese counterparts who took the risk, retooled, and are now producing fuel efficient cars didn't get anything. In other words, Congress just rewarded American businessmen for their failures and socialized the losses.(If they don't retool to produce carbon fiber cars, then the money will be wasted. We'll just be getting ripped off. Would you buy a $40,000 Chevy Volt when Honda and Toyota sell better cars for less? Expect the Japanese to be angry as hell.) Expect Wall Street to receive a gift in exchange for nothing if we don't keep Congress accountable for their legislation. The lenders get bailed out and the borrowers get - nothing. We've been warned
We need to correct the systems in place so that the incentives are in line with the behavior we desire. This is why we have rules and laws, though the way many of our laws are written, there's no incentive to do the "right" thing - right being the greater good.
Labels: rewarding failure