Tuesday, March 24, 2009

Misallocating Capital

Peter Boockvar at The Big Picture:
This program is also another huge gov’t intrusion into the financial markets on top of everything else and as we further socialize finance, we further misallocate capital as we distort the risk and reward.

Look, I know the titans of finance don't want to hear it, but the bubblicious nature of both the tech sector and housing over the past decade really ought to make people re-think the idea that financial markets are particularly good at allocating capital. It's not like the government could possibly do any worse.
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