Ep. 347 – No Pain, No Gain

The Kapital News
The Kapital News
Ep. 347 - No Pain, No Gain

In a continuation of our discussion related to moral hazard and the spending/bailout bill, we wanted to talk about the sacrifices people and corporations will likely be making. However, there is still unfortunately, going to be a lot of practices that will continue. Many of the same practices that have led us to so many structural issues that we are currently witnessing.

Corrections in markets are healthy and they are an indicator of a healthy system (even if only quasi-healthy). They correct for imbalances, malinvestments, levels of leverage and indebtedness, poor business decisions and the like. And at the end of these corrections, lessons are hopefully learned so that individuals, corporations, and governments can operate from a healthier foundation. Also, it would be the intent of free-markets to allow for those who made prudent business decisions and maintained healthy balance sheets, the opportunity to acquire the resources that are likely on sale for pennies on the dollar. Thus allowing for better managers to manage more resources. This is turn should lead to a better and healthier economy because you have better decision-makers at the helm. Of course mistakes will be made, but then the next correction, if allowed to, will correct for these inefficiencies as well. And the cycle continues. Get the picture?

Well in our current system, we’re not allowed to feel pain – well at least not those on Wall Street or Corporate America. No, no. They’re allowed to take outsized risks, reap the profits if they’re correct, but if they’re wrong, then their losses become socialized and we the people (taxpayers) have to bail them out. This is ridiculous and entirely immoral, unethical, and un-American. We have the opportunity now to wake up and say enough is enough and to demand the restoration of our Constitution and that of free-market capitalism. However, it appears that given the recent spending bill, passed by both parties, and happily signed into law by the President, that it looks like we’re going to have to wait a little longer for our peaceful revolution. And remember, there is no free lunch – so this government/ central bank “medicine” is likely going to be worse than the disease. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Recession #Bailouts #Debt #Republic #USA #Constitution #Revolution #EndTheFed #Gold

Join the discussion...