Savvy Trades and Investments

[michael t]

One of the benefits of free market capitalism is that it forces structurally flawed companies to either correct or go out of business. That process may be painful to investors in the short term, but it leads to capital being allocated to healthy companies with the potential for growth.

When the government intervenes in this process capital is misallocated. Structural failings are enabled. The end result is weaker companies with an expanded debt servicing burden and limited potential for growth. See Japan and western Europe.