Wednesday, October 20, 2010

It's the stock market stupid

I definitely appreciate the articles we read this week. For those who are not as familiar with the stock market, such as myself, this was very informative. Hopefully, this will help shape our discussions even more. However, I have to strongly disagree with the attack on government bailouts. I know I may be the loner on this one, but I am going to take one for the team. It was said in one of the articles, for instance, that "bailing out 'too big to fail' corporations weakens the self correcting process." What am I basing this on. Well, this week I am going to think like an Austrian, but with Keynesian views. I believe with no empirical and no historical evidence that bailouts of companies will positively affect the stock market. There are absolutely no historical examples that I can think of that would indicate this idea would fail in the long run. Even if there is, I fully reject this premise because any numbers that may support this claim are false based on the flaw of empirical evidence in the first place. Thank God for those who intervene in the stock market in such ways.

1 comment:

  1. Not that I agree/disagree with your conclusion, but arriving at it via a pure leap of faith? Tsk, tsk...

    At least by thanking God you're being consistent with your fundamentalism though, so there's that.

    Post is a day late by the way.