Sorry, Darwin

In the shadows of a golden age
A generation waits for dawn
Brave carry on
Bold and the strong
--Journey

Nationalization of Citi (C) appears to be pending. Is it not ironic that many of the same folks who rail against 'big business' and corporatism support efforts to keep failing monoliths alive?

In a free market, of course, inefficient firms fail. Firms more capable of allocating capital and managing resources replace them.

Many small banks have declined to participate in government rescue programs. These firms have made prudent decisions and, in a free market environment, would be poised to benefit from failure of the large banks.

By propping up the big banks, we snatch opportunity from the hands of the prudent and innovative firms. Over time, the message is that it does not pay to be prudent and innovative.

Standard of living is certain to decline in this situation.

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