Smell test

I have often mentioned that the free market system does more to help people than any other system but that the number one enemy of free market is corruption. Brazil is currently experiencing the disastrous results of large scale corruption. A cartel of companies was formed and through coordinated efforts over charged the State owned company Petrobras for products and services. The extra money was used to bribe people within Petrobras to cover up and then some of the money was filtered back to politicians who also covered up the scheme. This has all been exposed and their House of Cards is tumbling down. Many will be fined and many sent to prison but much of the money has been spend on extravagant life styles and the people of Brazil who own Petrobras will be the victims. This was one of the reasons I was concerned about the government offering money to renewable energy companies without minimal oversight. While there was nothing that I know of that was illegal there was the appearance of private deals since many of the recipients of this government largess donated to various political candidates and groups. It is similar to candidates who receive large contributions from Pacts and say this does not affect how they vote. Nothing illegal but it doesn’t pass the smell test!