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10:23
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Originally posted by Crom Valen
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I agree that all the dynamism will go out of the system. Instead of letting house prices fall, or businesses go bust, or bad banks collapse we just get an endless bailout. So what is a bad business and what is a good business, if zombie corporations are sustained? What is the right price for a rundown house or a brand new house when all house price falls are unacceptable? The market won't be able to price anything anymore, it'll just become a soup where rummy dilapidated houses are worth megabucks, bad and failing businesses march on indistinguishable from good and succesful businesses. Trashing capitalistic dynamism in this way does inevitably open the door for communism: when the wheels fall off the refrain will be "Capitalism failed us and brought financial destruction to millions (billions?) of people - this situation can never be allowed to occur again". Let's be clear: it is the utter abandonment of Capitalism that is causing the issues we have today. In Capitalistic society savers are REWARDED - they are the ones providing the necessary CAPITAL for investment!! In Capitalism bad businesses are supposed to fail. This prevents malinvestment. This is necessary 'creative destruction'. In Capitalism the market is supposed to function to accurately set prices - it is the central bank's gross meddling which is causing the horrible distortions and asset bubbles.
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Guess who bankrolled Communism and Lenin's train trip?
