The unstoppable rise of government rescues

Financial Times/Ruchir Sharma/3-27-2023

“True, it’s no longer politically possible for governments not to stage rescues, but this is a snowballing problem of their own making. The past few decades of easy money created markets so large — nearing five times larger than the world economy — and so intertwined, that the failure of even a midsize bank risks global contagion.”

USAGOLD note: Elements of the financial community have made a habit of demanding rescue at the expense ultimately of those who run their businesses frugally, prudently, and with an eye to the future. Ultimately, says Sharma,  “government intervention eases the pain of crises but over time lowers productivity, economic growth and living standards.”