I've been noticing an interesting trend. It became noticeable with the first US bailouts, then in the UK and Europe... and I suspect that it will hold true in India and China.
1) Due to previous government regulation, the economy begins to tank.
2) The government promises to inject money in to the economy, thus making everything fine!
3) On hearing the news, investors loose some of their understandable skepticism. They begin investing again, and the stock market prices rise. Government says "Yay! Look at us! We'll make everything okay again, see?!"
4) The government injects the money.
5) The money is instantly lost to the regulations and resulting bad business practices, that were present before the bailout.
6) Investors, with good reason, loose hope. Stock markets continue to dive. Government says "Ho, hum, guess we didn't do enough."
7) Lather.
8) Rinse.
9) Repeat, ad collapsium.
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