One of the reasons bailouts concern me

Every system which endeavours, either, by extraordinary encouragements, to draw toward a particular species of industry a greater share of the capital of the society then what would naturally go to it; or, by extraordinary restraints, to force from a particular species of industry some share of the capital which would otherwise be employed in it; is in reality subversive of the great purpose which it means to promote. It retards, instead of accelerating the progress of society towards real wealth and greatness; and diminishes, instead of increasing, the real value of the annual produce of its land and labor. All systems either of preference of of restraint, therefor, being thus completely taken away, the obvious and simple system of natural liberty establishes itself of its own accord. Every man, as long as he does not violate the law of justice, is left perfectly free to pursue his own interest his own way, and to bring both his industry and capital into competition with those of any other man, or order of men. The sovereign is completely discharged from a duty, in the attempting to perform which he must always be exposed to innumerable delusions, and for the proper performance of which no human wisdom or knowledge could ever be sufficient; the duty of superintending the industry of private people. and of directing it towards the employments most satiable to the interest of the society.

---Adam Smith

Despite all the problems in the housing market, for some reason they are constructing like crazy in Japan.  It may just be around my house, but it seems like every time I go jogging there is a new project underway.  Crammed into the amount of space an American would put one house, perhaps two, seven or eight huddle together close enough that a person couldn't squeeze between.  I've read in the Japanese economic newspaper that the real estate market is probably going to correct downwards some.  Not like America of course, but still, you'd think they wouldn't be tossing up so many houses just right now.

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