The Blog of Xangis

I’m reading the book “Bear Market Investing Strategies“by Harry D. Schultz.  It’s a few years old (written in 2002), but there’s a wonderful quote in the book that definitely applies to current governmental tinkering with the economy:

“Economics can be government influenced in a mild way, without huge damage.  But if governments try to control them in a major way, and thus defy the tides of a free, dynamic society, the net result will be more dramatic fluctuation.  Instead of a quick sharp bear market to squeeze out excesses, of the sort we saw in 1981 when government for once did the right thing, we will see a steady deterioration, where not only the economy suffers but the dynamism of society is eroded.”

It certainly makes sense, but it’s scary to think how much more broken things are going to get economically thanks to the various ham-handed band-aid fixes going on right now.