Saturday, October 1, 2011

Quote of the day

Megan McArdle:
A number of people have claimed that the government had to make these loans because they're "too risky" or "too big" for the private sector, forcing the government to act as a VC firm. That riskiness means that yes, a non-insubstantial number of the loans will fail.

But this doesn't really make any sense.

1 comment:

The Ancient said...

You have to think a real VC firm would have realized that Solyndra's products ran a substantial risk of being underpriced by Chinese competition.

(There's a whole generation of liberals who grew up in the 1970s and early 1980s -- coughgoreaclecough -- when the VC industry was still under-developed. The ideas people had for public intervention then make little or no sense today.)

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