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I don't see how the free market could have ever succeeded here. Even if it somehow accounted for events of the last week: the lost lives, damaged properties, an
by underwater 6y ago
I don't see how the free market could have ever succeeded here. Even if it somehow accounted for events of the last week: the lost lives, damaged properties, and economic impact, it was billed as a once-in-100 year event.
Which company is going to take a hit to their profits each quarter so they can prepare properly? The companies who don't will be more competitive and successful right up until a freak event actually occurs. And if that happens, the absolute worst case is the your under prepared company goes under. Unlimited upsides and very limited downsides.
- godtoldmetodoit 6y agoIf generators were required to be winterized in order to access the market, that would have solved the problem. No individual company will take the profit hit without a regulation forcing all the actors to do it.
- mplanchard 6y agoI agree with your point, but want to point out that this last happened in 2011, and before that in 1989. Certainly not a 100-year event, and likely to become more frequent.