Quote of the day

Our current bailout regime…I would say this situation is an affront to the market and an affront to democracy. ... The calculation [of potential bankruptcy] does not involve the safety of the asset as it has been managed, but the probability of a bailout.--William Poole

If government prevents ineffective producers from failing, the red light on the “economic traffic signal” stops working. Production continues and resources flow when they should halt, destroying wealth instead of creating it. --Peter Leeson