Originally posted by dreamingawake
ROSENBERG: The Fed Is Trying Like Crazy, But Nothing It's Doing Can Save The Economy
They are doing the wrong things.
They are rewarding inefficiency, and suppressing innovation.
Had they let the big inefficient banks fail, lots of smaller innovative bankers would have replaced them long ago.
Instead, they chose to maintain the aging system, continue to reward the non-productive sectors, and as a result stifle the smaller productive
It's hard to compete with free money.
If you're big, and get free money from the government because you're big, to keep you going, then every effort I, the small firm, makes to compete
with you, is doomed to fail.
I fail, not because I'm not innovative or productive, but simply because you get free funds to play, and I have to pay high interest for my funds.
So, by helping the big, we wipe out the small.
The small plants never get to grow and develop, because the big trees block out all the light in the forrest.
The Forrest rejuvenates itself, when the big trees are allowed to die, they fall down, and the sunlight finally gets to reach all the little plants
struggling to reach up, on the Forrest floor.
Success comes, after a catastrophic failure.
Until then, propping up the big trees, delays the inevitable, and just makes the transition more dramatic when it occurs.
Right now, the government is doing like the farmer, who removes all the little shoots, labeling them "weeds", so that the big trees can grow even
bigger. The problem is, the big trees have become the real weeds, and are sucking all the nutrients from the soil, while producing no fruit. So, the
return on investment is nil.