I continue to find it necessary to take a bit of a sabattical from politics.
It is therefore in a spirit of open — not loaded– questions that I ask this.
What’s the idealogical justification for the massive bail outs going on of all these ailing companies?
I’m not debating the pragmatic effectiveness of it all.
I’m wondering how somebody explains a belief in the power of the unfettered markets, on the one hand, and on the necessity of such massive government intervention, on the other. How did Adam Smith’s invisible hands let this happen?
A mostly unrelated question I have around all this stuff is based on something I read in the last few days. The claim being made was that with out the bail out, the economy will grind to a halt because borrowing and speculation will cease to exist… and so the question here I have:
Is an economy built on borrowing and speculation a well-built economy? Shouldn’t the foundation of our economy be something stronger than speculation and work we haven’t yet done?