Government (intervention) rarely prevents financial collapses — they almost invariably intervene only AFTER the collapse has struck (and) for the first time in modern history, governments themselves are in need of the giant bailouts
(Edited excerpts from an original article by Martin D. Weiss, Ph.D. (www.moneyandmarkets.com))
WHY ARE Investors are continuing to:
- invest as if nothing has changed
- take risks that, in prior eras, would have been deemed wildly imprudent
- hold massive sums in banks that are akin to gambling casinos and even when they DO rush to safety, they often jump from the frying pan into the fire,
- buy the bonds of some of the most fiscally bankrupt governments on earth.
Why? There can only be one possible explanation for this pathological complacency – die-hard faith in the supposedly “limitless power” of government to prevent financial disasters.
The origins of the complacency are not hard to see:
- every time a major financial disaster has struck in recent years, Big Government has swooped down like Superman to supposedly rescue the victims and,
- every time global financial markets have come to the brink of a total meltdown, Big Government has pulled them back from the abyss.