In the long run, equilibrium prevails, supply matches demand and something close to pure efficiency in market pricing reigns. In the short run, on the other hand, stuff happens.
The idea that Mr. Market wins eventually crosses our mind as we consider the massive government intervention of late. There are some who are expecting something for nothing as the Federal Reserve, the Treasury and other state entities step into the vortex of market turmoil. In fact, there’s a cost to everything, and that includes the intervention du jour.
The rationale for intervening is compelling at the moment, but no one should think it won’t come at a price. The question is: What price?