At the same time, markets deliver the bad news whether you want to hear it or not, but delivering the bad news is not a sign of failure, it is a characteristic of systems that work. When you stub your toe, the neurons in between your foot and your head don’t try to figure out ways not to send the news to your brain. If they did, you’d trip a lot more often. Likewise, in a market, bad decisions show up pretty rapidly: Build a car that nobody wants, and you’re stuck with a bunch of expensive unsold cars; invest in new technologies that don’t work, and you lose a lot of money and have nothing to show for it. These painful consequences mean that people are pretty careful in their investments, at least so long as they’re investing their own money.If that's true, how'd the Perfesser and all his pals miss the 2008 recession? The neurons in his economic foot weren't working too goddamn good then.
Well, I expect there's an excuse having to do with "crony capitalism" somewhere. Lagniappe: The Perfesser bolsters his case by making fun of foreign socialist dictators out of Bananas:
It is simple really: When the "Great Leader" builds a new stadium, everyone sees the construction. Nobody sees the more worthwhile projects that didn’t get done instead because the capital was diverted, through taxation, from less visible but possibly more worthwhile ventures — a thousand tailor shops, bakeries or physician offices.Or did he just get confused and use Scott Walker as an example?
UPDATE. In comments, ADHDJ: "Remember when Reynolds was predicting in early 2009 Obama was going to destroy the stock market? The DJIA has more than doubled in the seven years since he made that pronouncement. I'm sure Reynolds' opinion of Obama has changed accordingly -- the market demands it!"
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