market

A few weeks ago, the Fed expressed no intention to increase interest rates, but the will to maintain the current ones of 0 to 0.25%. The problem is that cheap money does not only indicate the prevailing economic problems, but imply long-term negative impact on both savers and economy.

The invisible hand is actually made of billions of very visible hands which put the products into shopping carts, receive payments, or shake other hands to complete a contract. The market is efficient because it is the only real “social” element of the arrangement of the society.

The investment incentives (part of state aid) are like a looser relative at a family meeting. Nobody is too excited to see him, but everybody is accepting that he has to be there. Every single economist will confirm that the incentive represents market disorder.