Lessons from John Cochrane

The government needs to make it very clear and soon what will and will not be bailed out. A "fire wall" needs to be established. What is in the wall will be protected...what is outside is on its own. If you know daddy is always going to catch you when you fall, then little junior gets to behaving badly. Well, bad little junior was our financial markets with the "too big to fail" belief. Turns out they were right.

"The ultimate result of shielding men from the effects of folly is to fill the world with fools.” Hubert Spencer



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