Ireland bailed out its banks to stop the much vaunted but never
explained domino effect of banks going down.  As a result its
debt went up, and its AAA credit rating went down.  Most
investment funds are required to be established in AAA
countries. So, it is said, Ireland’s financial industry is
increasingly moving abroad to places like Luxembourg.  How’s
that for a domino effect?  When individuals make a mistake, it
may have a domino effect.  But so do the state's mistakes.  The
only difference is that when the state creates a domino effect
it will be of far greater magnitude than an individual's.  On
top of that, the state making mistakes is more likely than an
individual making mistakes, because of Hayek's Knowledge
Problem: central decision makers simply do not have the
knowledge about individuals' choices and opportunities that
those individuals have. That state intervention usually has side
effect is generally accepted — the left's response is to mend it
with more regulations which in turn will fail.  S