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Right on! Apparently Lloyd Blankfein has said, "What's good for Goldman Sachs is good for America"
or words to that effect.

Three cheers for crony capitalism.

Just to add an idea to your great post/previous article. What's going on these days in Europe, particularly in Spain (the stock market is being much more extreme in Spain than in other countries of Europe these days), reminds me of the idea of the Big Players. Investors are waiting on the politicians decisions in order to buy or sell. Markets are being destabilised by those rumors, actions and decisions.

Roger Koppl did explain something along similar lines in the context of the Obama bailout in 2008: http://austrianeconomists.typepad.com/weblog/2008/10/roger-koppl-on.html

Actually, it's a funny thing about complex systems. They always have stability and instability in balance.

A living cell, for example, maintains stability only so long as there is constatnt turnover of the molecules which make up the cell. When the molecules reach stability -- equilibrium -- the cell dies.

The economy is the same way. If we have instability among the players in an economy, the economy itself is stable. But when the players are able to achieve stability for themselves, the economy becomes unstable. It's basic complex systems theory.

That has not been stable for the last several decades - it has steadily declined and it has recently gone negative.

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