Understanding the Financial crisis

You may not agree with this, but it's at least understandable.
 Hat tip Adam Smith Institute blog

Comments

[Peter Harvey]

I certainly cannot agree with the the proposition that political action (or rather inaction) that allows markets free rein can be equated, as interventionism, with the idea that markets should be made to adhere to sensible ideas and make provision for bad times, and not lend to people who can't pay.

The idea that politicians not markets produce bubbles is absurd. The corollary would be that a totally unfettered market would exist in a permanent state of perfect equilibrium -- and that is right up there with peace on earth, goodwill to all men, and free lunches as something that will never happen. Markets need an external regulator, which must be the state -- not least because a democratic state can legitimately keep undemocratic corporations under control.