Report It's Time To Pay The Piper....... in House prices and the economy Posted Friday at 08:37 AM On 14/10/2021 at 09:21, rantnrave said: Capitalism in this country died when the banks were bailed out. What should have been a significant house price collapse then was staved off by massive money printing and wave after wave of government intervention. We've had a version of crony capitalism since then - with a corresponding misallocation of economic resources and zombified businesses kept alive by ultra low interest rates. Moral hazard abounds. When I see reports that today's younger people are massively against capitalism, I think it gets lost that if the banks had not been bailed out in 2008, by now the relationship between hard work, earnings and property prices might have been restored. Didn't Iceland protect retail deposits, let the banks collapse, lob a few bankers in jail to make a point, endure a couple of years of hardship then bounce back stronger? Capitalism has always had an element of creative destruction. Business enterprises have always run the risk of failure, and the resources they take up then being reallocated to more profitable initiatives. Never has capitalism been about everybody winning all the time, and anyone in danger of losing receiving a state bailout. That is however where things seem to be at today. A separate question is whether that necessary destructive element and the short to medium term hardship it inflicts is compatible with democratic cycles of five years or less. Increasingly, politicians in this country and elsewhere don't seem to think it is. The Chinese authorities of course don't have to worry about such issues. Post of the year? Under capitalism interest rates would have been a measure of scarcity of money....... interest rates should be akin to a pressure gauge....... but all governments have locked the pressure gauge to under read. Should this be taught in schools? ?