Jul 21 2008

When there’s a financial crisis, look to the government as the cause

Category: corruption,diversity,economy,election 2008,politics — harmonicminer @ 10:27 pm

Thomas Sowell on the financial markets meltdown: here’s a taste, but read it all

It was government intervention in the financial markets, which is now supposed to save the situation, that created the problem in the first place.

Laws and regulations pressured lending institutions to lend to people that they were not lending to, given the economic realities. The Community Reinvestment Act forced them to lend in places where they did not want to send their money, and where neither they nor the politicians wanted to walk.

Now that this whole situation has blown up in everybody’s face, the government intervention that brought on this disaster in is supposed to save the day.

Sowell is not the first person to make this observation, though his very prominent voice is a strong confirmation.

2 Responses to “When there’s a financial crisis, look to the government as the cause”

  1. harmonicminer » When there’s a financial crisis, look to the government as the cause, part 2 says:
    July 23rd, 2008 12:29 pm

    […] Sowell continues his previous discussion of how the government is the primary cause of our current financial issues. We don’t look to […]

  2. john says:
    August 2nd, 2008 5:44 am

    thats really awesome post really.

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