Saturday, December 13, 2008

Market Success

from The Rational Capitalist:

No doubt we will continue to hear that "market failure" is to blame for the current crisis...The meltdown in the economy and particularly the automakers is, in fact, a glaring example of market success. When a company fails to make a profit and its stock plummets and no one will lend it money, it is the markets way of saying "stop what you are doing." If companies continue to produce products that no one wishes to buy would this be an example of market success or market failure?


1 comment:

Anonymous said...

Affordable housing crisis?

Market failure!