Let's try again with the market is (never) wrong.

So. According to the national audit Office the government's bail out of the banks is heading for break even!

If the banks ridiculous performance in the FTSE is anything to go by. Maybe better than break even.

So. A few short years ago all those people buying bank shares were sellers. There was in fact no buyer to be found.

Doesn't that make the market wrong? And. Potentially. Catastrophically wrong?

You may try to claim that but for government intervention all the banks would have ceased to exist so the market would have been right without intervention.
Well that argument is circular. The same sellers are now buyers. And they see a good future for the banks (presumably!)

So surely at best they were right then in the short term only. But being allowed to be right would have prevented there being a long term at all.

The market is not a bad thing. Its a better way of setting prices thank asking Josef Stalin to do it.

But it is not perfect. It is deeply flawed because of the deeply imperfect people who inhabit it.

The mistake isn't to have a market.

The mistake is to think its always right.

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