Free Markets: Do they Exist?
There is a lot to discuss on this subject. For lack of time, I was not able to participate in the discussion started by Sandeep. Here is an excellent depiction of the complicated political and economic continuum, which some see in black-and white.
What do I mean by “black and white?”
“Government is not the solution, government is the problem” makes a great soundbite, even though it means jack. Here is my short summary:
Free Markets are like unicorns and Santa Clause. They don’t exist. Unfettered belief in free markets, nary an acknowledgment of the existence of bubbles and fraud has brought us where we are here today.
I can go on and on – but it will be dry and boring for you if I go on a solo rant. I am hoping to debate Chakravarthy garu about this on the MMGL Show on this Friday, April 16th. [Stay tuned..]
You can visualize for yourself where the following depiction falls in the above illustration. FYI, this scenario was brought to you by the strongest believers in “regulation-free Free-Markets:” Rubin, Summers, Phil Grant, and most importantly Regan and Greenspan.