Do you think this approach of using government money to guarantee high-risk adjusted rates of return to investors may have also as a ramification that investors can get lazy? They can invest in things that would not otherwise produce that superior rate of return, or that have all of the risk taken off them by taxpayers, instead of investing in innovation.
Very quickly, I think of the example of Israel. When it stopped running massive deficits about 20 years ago, bondholders could no longer just lend to the government to get a rate of return. They actually had to invest in innovation. That's why we now call Israel the “start-up nation”: all of this money rushed into high tech and created Israel as a start-up nation. Do you think this government intervention is actually directing investment away from innovation and towards otherwise unmeritorious investments?