--- title: "Meaning & Key Takeaway of: The government can always rescue the…" description: "\"The government can always rescue the markets or interfere with contract law whenever it deems convenient with little or no apparent cost. (Investors be..." image: "https://sms4smile.com/quotes/i/922/seth-klarman-1979_believe_the-government-can-always-rescue-the-mar_2391773.jpg" --- # The government can always rescue the markets or interfere… ![“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…” quote by Seth Klarman](https://sms4smile.com/quotes/i/922/seth-klarman-1979_believe_the-government-can-always-rescue-the-mar_2391773.jpg) [Download](https://sms4smile.com/quotes/i/922/seth-klarman-1979_believe_the-government-can-always-rescue-the-mar_2391773.jpg) [Open image](https://sms4smile.com/quotes/i/922/seth-klarman-1979_believe_the-government-can-always-rescue-the-mar_2391773.jpg) > “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.")” [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. He warns that governments repeatedly intervene in markets, creating moral hazard and long‑term economic distortion. **In simple terms:** Government bailouts create risky behavior and future problems. Key Takeaway Beware of relying on government rescues. Themes government intervention market distortion moral hazard policy risk Mood cautious critical Type analytical warning When to use this quote - investment strategy - regulatory analysis - policy advocacy - risk management Key Concepts public choice theory economic incentives Questions to Reflect On - Is all government involvement harmful? - How can markets stay resilient? A Different Perspective Intervention may be necessary in crises. ★ ★ ★ ★ ★ No ratings yet [Design](https://sms4smile.com/quotes/about/design/) [Economics](https://sms4smile.com/quotes/about/economics/) [Economy](https://sms4smile.com/quotes/about/economy/) [Financial Market](https://sms4smile.com/quotes/about/financial-market/) [Financial markets](https://sms4smile.com/quotes/about/financial-markets/) [Friedrich hayek](https://sms4smile.com/quotes/about/friedrich-hayek/) [Government](https://sms4smile.com/quotes/about/government/) [Investing](https://sms4smile.com/quotes/about/investing/) [Investors](https://sms4smile.com/quotes/about/investors/) [Lasting legacy](https://sms4smile.com/quotes/about/lasting-legacy/) [Law](https://sms4smile.com/quotes/about/law/) [Legacy](https://sms4smile.com/quotes/about/legacy/) [Men](https://sms4smile.com/quotes/about/men/) [Moral](https://sms4smile.com/quotes/about/moral/) [Moral hazard](https://sms4smile.com/quotes/about/moral-hazard/) [Mother](https://sms4smile.com/quotes/about/mother/) [Politics](https://sms4smile.com/quotes/about/politics/) ## Related quotes > [ Ever read any \[Friedrich\] Hayek? 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I think the Adam Smith role was played in this cycle i.e. the late twentieth century collapse of socialism in which the…](https://sms4smile.com/quotes/milton-friedman/i-think-the-adam-smith-role-was-played-in-this-cycle-i-e-the-late/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) ## More by Seth Klarman > [Unlike return, however, risk is no more quantifiable at the end of an investment that it was at its beginning. 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