Inevitability

Will you recognize me?
Call my name or walk on by
Rain keeps falling, rain keeps falling
Down, down, down, down
--Simple Minds

For anyone seeking background on moral hazard and how it has been enacted in financial markets, Jeremy Grantham's April 2008 Quarterly Letter, "Immoral Hazard," is a brilliant read (you can find it at www.gmo.com).

My only criticism is that Mr Grantham continually cites actions that the Fed 'should have' taken to reduce moral hazard and deflate asset bubbles. As if perhaps a different bunch of bureaucrats could have done any better.

Poor decisions are inherent to central planning. When decisions are taken away from markets and put into the hands of bureaucrats, the inevitable result is distortion that impairs societal growth and prosperity. There is no secret sauce that will make central planning work.

Market controls are destined to fail by their design.