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Blaming the current financial crisis on the failure of markets is like blaming an airplane crash on the failure of gravity.

The markets didn't fail, you demanded they do something impossible. This crash is the predictable and correct result of the inputs you provided. If you let an airplane turn into an ice-covered flying brick, gravity continues to do exactly what it will do - your flight plan might as well be a parabola - and people die. The NTSB never, in its investigations, asks "What went wrong with gravity?" What makes you think markets are any different?

You might think that we can find an alternative to markets, that markets are a political tool that can be chosen or rejected. They're not. They operate at all times and in all places, and always by the same laws. They are the given that your political positions are tested against.

You have failed.


<em>[Markets] operate at all times and in all places, and always by the same laws.</em>

Surely the most important -- and probably the most difficult -- thing to understand about markets.

Ultimately governments, however much they meddle in or try to wave away markets, themselves stand or fall in the marketplace.

Really compelling post.

Posted by Linda Morgan at Monday, February 16, 2009 11:44 AM

Along this line of thinking, governments can be viewed as organizations which have arisen in order to serve the "market for aggression."

Could it be posited that so long as the the market for aggression exists, governments will exist too?

Posted by Seth at Sunday, August 30, 2009 04:26 AM

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