The Government Makes The Market
a: Helium market ~
What: "Essentially, when you're the US government and you're a major participant in a market, you can't help but become the marginal price-setter. Whatever Frannie pays for mortgages becomes the market price for mortgages; whatever the government asks for helium becomes the market price for helium."... "In both markets, the government wants out and wants the private sector to take over. But in both markets, the process of disentangling the government from the market is extremely difficult, because it can't just shut down its operations and leave the market to its own devices."
Writer: Felix Salmon
Date: Sep 16 2013 8:20 PM
# 3642 Critique Analogy