In Reply to: 2 GS posted by Hải Âu on Jul 23, 2020 at 07:17:39:
Hi anh HA
Sáng nay GS đọc bài này Larry McDonald nói về the cobra effect rất interest
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As the story goes, there was once so many cobras in Delhi that there was a bounty placed on each dead one delivered to the government. At first, it worked. But then, entrepreneurs began breeding cobras for the income, and the authorities had to cancel the program. The breeders then released their snakes — whoops! — and the cobra population exploded worse than ever.
That is what’s known as the “cobra effect,” and, as Wall Street veteran Larry McDonald explained, it’s playing out right now in regard to the unintended negative consequences of public policy and government intervention in economics. Basically, the solution is worse than the problem.
‘Basic economic assumptions, or structures, will turn out to be much more fluid than policymakers can anticipate. Therefore the results will be disastrous and unimaginable.’— Larry McDonald
https://www.marketwatch.com/story/the-cobra-effect-will-have-a-disastrous-and-unimaginable-impact-on-the-market-wall-street-vet-warns-2020-07-22