The bailout bill aims “to restore liquidity and stability to the financial system of the United States…” It thus establishes an Office of Financial Stability. The problems presented in these vague goals are an order of magnitude worse than the socialist calculation problem that von Mises brought to our attention. At least the socialists could observe prices in other countries. In this case, even if Congress knew what liquidity and financial stability actually meant, and the Act provides no definition of them because they do not know, it still would not know how to control them. Even if the Congress … Continue reading Financial stability = bail out weak banks