I am not an economist, but Steven Horwitz is and his “Open Letter to my Friends on the Left” is well worth reading. He lays responsibility for this “$700 billion booty” squarely on the shoulders of federal mandates gone awry.
My friends,
In the last week or two, I have heard frequently from you that the current financial mess has been caused by the failures of free markets and deregulation. I have heard from you that the lust after profits, any profits, that is central to free markets is at the core of our problems. And I have heard from you that only significant government intervention into financial markets can cure these problems, perhaps once and for all. I ask of you for the next few minutes to, in the words of Oliver Cromwell, consider that you may be mistaken. Consider that both the diagnosis and the cure might be equally mistaken.
