When markets don’t perform the way politicians want, you can count on them to bypass, manipulate or manage these markets. All too frequently these attempts are motivated by short-term political needs where appearances take priority over substance. Currently market distortions in housing, credit and the financial system are huge and dangerously unstable. We are now beginning to pay the price. There is a critical shortage of political will to tackle the underlying problems and band-aid solutions will likely keep us lurching from one crisis to the next over the coming years.
Read the full report: "Government Policy and the Markets: Prepare For Some Big Changes" (PDF).
Reposted with respect and permission from The Boeckh Investment Letter
