Profits from market crashes today fertilize growth tomorrow.
Creative destruction.
Demonizing profits demonizes creation -- Demonizing profits demonizes market healing. And when governments mitigate the pain of market crashes via stimulus in all its forms they reduce the profits to be gained from market corrections thus robing future market creation and growth of the fertilizer that results from market crashes.
In short, when governments hinder the transfer of wealth from failure today, they hinder growth tomorrow.
Alessio Rastani understands that that transfer of wealth will eventually occur despite all actions otherwise.
Because BBC videos disappear below is a partial transcription of the above exchange:
I hope to find the full exchange later...Alessio Rastani: The market is gonna crash, and it's gonna fall pretty hard. Because markets are ruled right now by fear. Investors, the big money, the smart money, I'm talking about the big funds, the big hedgefunds, the institutions, they don't buy this rescue plan, they basically ... they know the market ist toast. They know the stock market is finished. The Euro, as far as they concern, they don't care. They're moving their money away to safer assets, like treasury bonds, 30-year bonds, and the US-dollar. So, it's not gonna work.
BBC: We keep hearing, that whatever the politicians are suggesting ... isn't right. Can you pin down what would keep investors happy, make them feel more confident?
BBC: If you could see the people around me, jaws have collectively dropped, because of what you just said. I mean we appreciate your kanda, however, it doesn't help the rest of us, doesn't it, or the rest of the Eurozone.
Alessio Rastani: Listen, everybody who's watching this. This economic crisis is like a cancer. If you just wait and wait thinking this is gonna go away ... just like a cancer it's gonna grow and it's gonna be too late. What I would say to anybody is: Get prepared! This is not the time right now for wishful thinking that the government is gonna sort things out. The governments don't rule the world, Goldman Sachs rules the world. Goldman Sachs does not care about this rescue package and neither does the big funds. So, actually, I would actually tell people: People can make money from this, it isn't just traders. What they need to do is learn how to make money from a downward market. The first thing people should do is to protect their assets. Protect what they have. Because in less than 12 months, my prediction is, the savings of millions of people is gonna vanish. Ah, and this is just the beginning. So, I would say, be prepared and act now. The biggest risk people can take right now is not acting.
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