In view of the attention this site has devoted to F.A. Hayek (see, for example here and here), readers may be interested in the latest from fund manager Seth Klarman. On Mr. Klarman's list of ten "false lessons" that investors seem to have learned from the financial crisis:
The government can always rescue the markets or interfere with contract law whenever it deems convenient with little or no apparent cost. (Investors believe this now and, worse still, the government believes it as well. We are probably doomed to a lasting legacy of government tampering with financial markets and the economy, which is likely to create the mother of all moral hazards. The government is blissfully unaware of the wisdom of Friedrich Hayek: "The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.")
