September 19, 2008
– Comments (6)
Dunno where they got that, but it's funny.
Free market capitalism is dead ...
The free market has been dead for some time now. To truly achieve a "free market" without government intervention, you'd have to hit the reset button on mankind.
Is the US any more free of a market than Venezuela or Russia? Essentially, we have nationalized three of the largest companies (AIG, FNM and FRE) in the US stock market in the past two weeks. Now, our government is considering bailing out the insulating the entire financial system from bad decisions. This turns the concept of risk management on its head.
Sounding like a broken record here, but the concept of risk management has been turned on its head for sometime now. Just look at the past five years, for example. The debt markets were irrational -- Greenspan called the inverted yield curve a "conundrum", after all -- but market volatility was extremely low. The mirage of low risk + too much leverage that has been in the market for some time now has come home to roost. All those market mavens who thought they were "managing risk" more effectively than those before them are partly to blame for this mess.