Hard Rain

Superman where are you now
When everything's gone wrong somehow?
The men of steel, the men of power
Are losing control by the hour
--Genesis

German Chancellor Angela Merkel is stepping up calls for regulation in what she calls "a battle of the politicians against the markets."

Jeff Cooper shared this Merkel quote although it is uncited:

"Governments must regain supremacy. It's a fight against the markets and I'm determinied to win this fight."

Consistent w/ yesterday's post, this is a battle that politicians think they can win. Overconfidence bias, availability cascades, et al.

Although markets around the world are not free, market forces persist nonetheless. Actions to restrain market forces do not negate them. Instead, restraints cause market forces to build (think trying to hold back rising water behind a dam that is springing leaks). At some point it is likely that the potential energy of market forces turns kinetic, and overpowers all attempts at restraint.

Politicians have been acting to restrain market forces for at least a century. One has to wonder how much longer this will continue.

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