Secret Separation

We are passengers in time
Lost in motion, locked together
Day and night, by trick of light
--The Fixx

Nice recent Bloomberg interview with Marc Faber in which he discusses many relevant issues. In fact, I'd say this video is a must view for those seeking a 'non mainstream media' perspective on the economic and financial problems we face.

I wanted to highlight one particular point Marc makes. He notes that, throughout time, a primary argument for government intervention in markets has been to smooth out the peaks and troughs of economic cycles--a cycle that occurs naturally. He sagely notes, however, that while bureaucrats are quick to fill in the valleys during during cyclical downturns, they are reluctant to cut off the peaks during cyclical booms.

This asymmetrical action is one reason why intervention destabilizes, rather than stabilizes, markets.

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