The Limits of Control: Why Bailouts Don't Work

One of the foundations of Sun Tzu's system is that we have to adapt to environment because we cannot control it. I have written extensively about the illusion of control in many posts, especially the mistaken idea that the government is god and can rewrite the rules of nature at will. This has failed every time it has been attempted. As long as our political candidates feel they need to perpetuate the illusion of government control, we are the worse for it. While Wall Street rose briefly on the news of the government bailout, you cannot hold back the tide. Organization must die when they fail. The idea that the government can resuscitate the dead corpse of failed organizations results from a misdiagnosis of why companies are successful. I suggest all our readers prepare for a recession and a deeper, longer decline in the stock market. This is exactly what happened in Japan where instead of letting failing organization fail they propped them up to create a 14 year problem that would have cleared itself up in two years.