EU, US and China should stop supporting failure and allow the markets to functi

Nov. 28, 2011 - PRLog -- Sahit Muja: Europe Union, US and China should stop supporting failure and allow the markets to function properly
The chickens are coming home to roost for the socialist governments of Europe.

The European countries simply cannot continue to provide gold-plated social service and pension plans for all citizens and expect not to have to pay the piper some day.
That day has arrived for Europe Union and United States of America.

The Global healthy market fundamentals reward a wise investment with a profit while a foolish one reaps a loss.

However, in these irrational, perverted times those making foolish investments based on greed are quick to grab profits for themselves but then expect others to bail them out when the losses threaten.

The Wall Street debacle epitomized the shameful practice as the US taxpayers were suckered into bailing out and covering the losses.

Similarly, the foolish bond investors in the European fiasco expect to be bailed out for their bad investments.

Instead, the bonds should be defaulted and the losses incurred - which would allow the markets to function properly.

EU, US and China need to  remove the moral hazard incentive, force the bankrupt nations to properly manage their fiscal affairs within their means, and lower their credit ratings which would curtail their abilities to continue to borrow recklessly.

Some of the losses would also be felt in U.S., by the foolish Chinese investors they also need to learn the lessons of a healthy market, and a painful and expensive experience.

The same should apply to the foolish creditors who purchased the  bonds which have proven to be junk.

It doesn't matter how much fuel you have on your car. If you travel and speed beyond your means, you will run out of gas.
And don't assume the Chinese and Saudi Arabians will keep lending you  money and gas.

It doesn't matter how many taxes you have in your laws. If you borrow and spend beyond your means, you will run out of cash.

And don't assume the Chinese and Saudi Arabians will keep lending you cash.
Try a alternative to big governments that waste resources and pollute to small smart government.

Even if income taxes, investment taxes, and corporate taxes are at 50% it won't help if the careless and bloated government spending goes beyond the tax revenues.

Sahit Muja
President and CEO
Albanian Minerals
New York

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Albanian Minerals is Metal Mining and trading Company one of fastest growing mineral company in Europe