Blog

Over the weekend, we analyzed a Washington Post article describing the economic crisis in simple but powerful terms. The article maintained that the problem was caused by risky lending and the solution was regulation to impel "banks" to reduce practices that could lead to risky lending. We pointed out in our analysis that regulatory efforts will likely fail – as they always have in these situations (and in fact all such situations) – and that it would be much better to let the free market work.