Thought of the day

Governments have grown too big to be supported by their economy. This problem can't be fixed by bailouts or haircuts or bank recapitalizations; it requires fundamental changes in the role and size of government in modern economies, because there is a tipping point beyond which a government that has grown too much begins to suffocate its economy. (Source: Calafia Beach Pundit, WSJ)

I always maintained that we are not facing the death of capitalism. We are facing the death of socialism. I am glad to read that a thinker like Edward P. Lazear hints at the same idea on the WSJ.

Governments have become too big. They promised too much. Now it is the time to pay the piper. And there is no money. This situation has nothing to do with capitalism. This process has happened in the USSR and Cuba. It is time to let the markets operate they way they should.

More details in my The Peter Dag Portfolio and my free educational videos on www.peterdag.com.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
2009 Market Timer of the Year by Timer Digest

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