Saturday, 22 November 2008

Will General Motors file for bankruptcy on Monday morning?

Probably not. I expect that the politicians will bail GM out. But maybe its time is up.

If you accept the Austrian view of economics - as I do - then this whole financial mess won't resolve itself until all of the world's malinvestments have been liquidated. By malinvestments I mean everything that's been spent on business ventures as a direct result of all that monetary expansion that wouldn't have occurred in a free market.

Bailouts by Bush, Brown and the rest may delay the day of reckoning for a while but can't change the ultimate end game. The world watches. Gold was up 7.66% on Friday despite the manipulation.

(UPDATE: there's going to be a lot of anger before things are resolved. I bet McCain's glad to be out of it.)

1 comment:

David Farrer said...

Comments made on previous template:

çiçekçi
For sharing thank you very much wish success

28 November 2008, 12:56:30 GMT
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jameshigham
until all of the world's malinvestments have been liquidated 
 
But as the government keeps bailing these out, then it will take considerable time and a nationalized economy, in which to do this.

27 November 2008, 16:23:54 GMT