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av({"version":"1.0","encoding":"UTF-8","entry":{"xmlns":"http://www.w3.org/2005/Atom","xmlns$blogger":"http://schemas.google.com/blogger/2008","xmlns$georss":"http://www.georss.org/georss","xmlns$gd":"http://schemas.google.com/g/2005","xmlns$thr":"http://purl.org/syndication/thread/1.0","id":{"$t":"tag:blogger.com,1999:blog-1255205710242367002.post-4986233256998056807"},"published":{"$t":"2012-11-20T01:46:00.002-08:00"},"updated":{"$t":"2012-11-20T01:49:19.984-08:00"},"title":{"type":"text","$t":"No more small booms and bust's!"},"content":{"type":"html","$t":"\u003Cbr \/\u003E\u003Cdiv style=\"text-align: justify;\"\u003E\u003Cspan style=\"font-family: Arial, Helvetica, sans-serif;\"\u003EAnd yet our economic policy makers have often aimed for maximum stability,  even for eradicating the business cycle. “No more boom and bust,” as voiced by  the U.K. Labor leader Gordon Brown, was the policy pursued by Alan Greenspan in  order to “smooth” things out, thus micromanaging us into the current chaos. Mr.  Greenspan kept trying to iron out economic fluctuations by injecting cheap money  into the system, which eventually led to monstrous hidden leverage and  real-estate bubbles. On this front there is now at least a glimmer of hope, in  the U.K. rather than the U.S., alas: Mervyn King, governor of the Bank of  England, has advocated the idea that central banks should intervene only when an  economy is truly sick and should otherwise defer action.\u003C\/span\u003E\u003C\/div\u003E\u003Cdiv style=\"text-align: justify;\"\u003E\u003Cspan style=\"font-family: Arial, Helvetica, sans-serif;\"\u003EPromoting antifragility doesn’t mean that government institutions should  avoid intervention altogether. In fact, a key problem with overzealous  intervention is that, by depleting resources, it often results in a failure to  intervene in more urgent situations, like natural disasters. So in complex  systems, we should limit government (and other) interventions to important  matters: The state should be there for emergency-room surgery, not nanny-style  maintenance and overmedication of the patient—and it should get better at the  former.\u003C\/span\u003E\u003C\/div\u003E\u003Cspan style=\"font-family: Arial, Helvetica, sans-serif;\"\u003E\u003Cbr \/\u003E\u003C\/span\u003E\u003Cspan style=\"font-family: Arial, Helvetica, sans-serif;\"\u003EFrom WSJ\u0026nbsp;Learning to Love Volatility\u003C\/span\u003E\u003Cbr \/\u003E\u003Cspan style=\"font-family: Arial, Helvetica, sans-serif;\"\u003E\u003Cbr \/\u003E\u003C\/span\u003E\u003Cspan style=\"font-family: Arial, Helvetica, sans-serif;\"\u003E\u003Ca href=\"http:\/\/professional.wsj.com\/article\/SB10001424127887324735104578120953311383448.html?mg=reno64-wsj\" target=\"_blank\"\u003Ehttp:\/\/professional.wsj.com\/article\/SB10001424127887324735104578120953311383448.html?mg=reno64-wsj\u003C\/a\u003E\u003C\/span\u003E\u003Cbr \/\u003E\u003Cspan style=\"font-family: Arial, sans-serif; font-size: 9.5pt;\"\u003E\u003Cbr \/\u003E\u003C\/span\u003E\u003Cspan style=\"font-family: Arial, sans-serif; font-size: 9.5pt;\"\u003E\u003Cbr \/\u003E\u003C\/span\u003E\u003Cspan style=\"font-family: Arial, Helvetica, sans-serif;\"\u003EPS The idea to regulate, to suppress volatility, to combat the  business cycle and to bailout the losers is turning the world into a fragile  system prone to a big fall. If we don’t allow for small failures one day we will  get a big one. All of this is done in order to win the next election......I think democracy is not serving the people anymore.\u003C\/span\u003E"},"link":[{"rel":"replies","type":"application/atom+xml","href":"http:\/\/thoughtmeme.blogspot.com\/feeds\/4986233256998056807\/comments\/default","title":"Post Comments"},{"rel":"replies","type":"text/html","href":"http:\/\/thoughtmeme.blogspot.com\/2012\/11\/no-more-small-booms-and-busts.html#comment-form","title":"0 Comments"},{"rel":"edit","type":"application/atom+xml","href":"http:\/\/www.blogger.com\/feeds\/1255205710242367002\/posts\/default\/4986233256998056807"},{"rel":"self","type":"application/atom+xml","href":"http:\/\/www.blogger.com\/feeds\/1255205710242367002\/posts\/default\/4986233256998056807"},{"rel":"alternate","type":"text/html","href":"http:\/\/thoughtmeme.blogspot.com\/2012\/11\/no-more-small-booms-and-busts.html","title":"No more small booms and bust's!"}],"author":[{"name":{"$t":"Unknown"},"email":{"$t":"noreply@blogger.com"},"gd$image":{"rel":"http://schemas.google.com/g/2005#thumbnail","width":"16","height":"16","src":"https:\/\/img1.blogblog.com\/img\/b16-rounded.gif"}}],"thr$total":{"$t":"0"}}});