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Doh!

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Let no one accuse politicians and bureaucrats of lacking Homeric courage.  When prices change in ways that disturb the electorate – whether it be gasoline prices rising or corporate share prices falling – the political class springs into action against prices that dare to truthfully reflect less-than-rosy underlying realities.

Like Homer Simpson [2] who routinely deals with problems by closing his eyes and pretending that what he no longer sees no longer exists, government efforts to stop or modify price movements – such as the SEC’s unprecedented ban on short-selling [3] – merely blind markets to reality.  The result is immediate relief from unpleasant sights, followed by uncomprehending and harmful stumbling in the resulting darkness.

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