No Price for Being Wrong

October 8, 2008
By seadmin

"It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people who pay no price for being wrong."

–Thomas Sowell

Once again, this week’s quote comes from the great economist and thinker Thomas Sowell. His words echo my sentiment that this whole bailout boondoggle will be a long-term negative for the markets. Why? Well, because these decisions are being made by those without a real stake in the matter, and by those who are essentially shielded from any punishment if they are wrong. In the real world, when private citizens mess up we pay the price for being wrong. But when the government makes a mess of something, their solution is to get more money and more power so that it can "fix" its mess. No price for being wrong, indeed.

Wisdom about money, investing and life can be found anywhere. If you have a good quote you’d like me to share with your fellow Alert readers, send it to me, along with any comments, questions and suggestions you have about my radio show, newsletters, seminars or anything else.

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