Two different issues seem to be mixed in here.
One is market failure, the other is illegal acts by
Enron execs possibly linked to illegal acts by
the Bushies. The mere fact of a company failing,
even a large one, is not a market failure. Market
failures exist because markets keep functioning
in some perverse, diseconomical way.
Neither is the commission of illegal acts a market
failure. In this case, such acts happen to be politically
sensational. That's the importance, IMO. Not
market failure. Capitalism is guilty of its successes,
not its failures.
mbs
To answer Michael's question below: "No."
But the reason for the Wall ST Journal story was not to work through
micro theory to get the "right answer." The article appeared to head off
any questioning of "the market" in Congress or State legislatures. People .
. .
Michael Perelman wrote:
> Is it ever possible to the disprove market efficiency to the satisfaction
> of a conservative economist?
>
