Government intervention can distort market signals from "summary" of The Little Book of Bull Moves in Bear Markets by Peter D. Schiff
When politicians meddle in the economy, they often do more harm than good. By manipulating interest rates, printing money, or bailing out failing companies, governments can disrupt the natural flow of the market. This interference can lead to misallocations of resources, artificially inflated asset prices, and unsustainable bubbles. When market signals are distorted by government intervention, investors may make decisions based on false information. This can create a false sense of security, leading to excessive risk-taking and speculative behavior. In the long run, these distortions can result in economic instability and financial cri...
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