Amazingly, markets on Friday are shrugging off the bailout disarray. The equity market is down just 1%, a normal day, as the solons of DC bicker. No Armageddon in sight. (If markets do drop, this will be more to do with the ban on short-selling as anything else. The ban has sapped liquidity and will prevent short covering should it be needed.) Meanwhile Washington Mutual failed and the market was able to deal with the problem without a taxpayer bailout. Bankrupt Lehman’s employees are being snapped up by Barclays and Nomura without government funds. Watch the politicians rush to enact the bailout anyway, in order to prove their relevance.
Source link: http://archive.mises.org/8618/markets-fail-to-crash-as-predicted-by-financial-socialists/