Quote:
Originally Posted by 732002
Yes and No.
I just started reading: Manias, Panics, and Crashes.
The point that was made in this book is that markets generally
work, but occasionally they break down and require government
intervention for the public good of stability.
The downside is that if the government steps in too often the
market is more likely to take bad risks, and need more Gov help.
Positive feedback.
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I heard bits and pieces of a similar POV on the radio this afternoon. I wasn't able to really listen though. I'd appreciate more elaboration on the above points if you feel like it. What are some historical examples of Gov. stepping in?