While the world waits for “herd immunity” to take hold to help protect us from ongoing waves of the Coronavirus, a different kind of “herd” is once again being made immune from bearing any responsibility for their irresponsible debt-fueled actions over the past decade. And unlike with COVID-19, the government is guaranteeing their survival.
Forbes: Stimulus Money May Jumpstart The Economy, But Who Is Picking Up The Tab?
“There’s no doubt that it’s socially desirable to rescue our economy; but are we attempting to solve a debt problem by piling on more debt? That’s a scenario that may not end so well. “
“Also, why were we so focused on stopping a market correction? Doesn’t the mere drop in prices caused by a dramatic market sell off automatically help form the basis of the next market recovery? Socializing losses while privatizing profits sounds great politically, but with each successive crisis, the likelihood of future victories grows more remote.”
“…efficient markets, which automatically reallocate capital from failed businesses to successful ones, get unsettled when politically-powerful zombie firms (with far too much debt) successfully lobby for handouts when times get tough.”