Tuesday, October 28, 2008

Atlas Shrugged

Could the market volatility and lack of liquidity be a result of traders/speculators not willing to deploy capital because of the huge amount of interference and intervention by the government into the markets? Traders should have been able to short the investment banks and insurance companies into bankruptcy. Instead, they were forced to cover their short positions because of anti short selling rules and taxpayer funded bailouts. The irrationality of the people to trust an investment banker, Hank Paulson, to act on the behalf of the American taxpayer is stunning. As I finish reading Ayn Rand's "Atlas Shrugged", I can't help but wonder if the cost of playing in the market has exceeded its benefit. Will we see expatriation of people as well as dollars when the interference and intervention increases? When taxes increase on achievers, will they head for countries where their achievement is rewarded in the form of lower regulation and taxation? I would tend to believe so. I recently started a company, and I can't believe how onerous the IRS and Federal government really are. I wish there were a place where I didn't have to support the bad decisions of others, or for others to support my bad decisions. The more I look, the more I see myself in one of the countries I mentioned in previous posts; Hong Kong, Singapore, New Zealand, Australia, and Ireland.

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