Prediction
Ξ March 22nd, 2009 | → 0 Comments | ∇ Politics |
The stock market will tank on Monday after it digests the latest plan from Obama. Honestly, this is the logical extension of the bans on bonuses, as the obvious reaction of those getting bonuses confiscated would be “to hell with this” and find work at non-bailout banks. This is the crux of the problem with government micro-management – generally no one realizes the full implications of the governments actions – and those implications tend to be much larger in scope than originally intended.
Recently, people like Amity Shlaes and Jonah Goldberg are publishing books showing the problems with FDR’s New Deal (six years after his election one in five were still unemployed). It seems, unfortunantly, we haven’t learned from history as we’re repeating the mistakes of Hoover and FDR. I have my doubts that the economy is going to recover anytime soon.
UPDATE: Wow, was I wrong. I guess the markets liked the new that the government was pumping $1 trillion more into the financial markets over the expansion of government regulation of executives.
Leave a reply
You must be logged in to post a comment.
