Iain Murray at 'Open Market':
The bailout bill that passed through Congress today seeks to solve the financial mess by massively increasing government involvement in private finance. But more Government cannot be the answer to a government-created problem. The fact is that short-sighted government policies distorted the market in the first place. Bankers were certainly to blame for responding to these signals from government in the hope of a quick buck, but at its base, much of the problem was caused by government.
These are the top twelve articles, stories and papers that we think demonstrate this fact.
1. Fannie Mae and Freddie Mac are at the heart of the crisis, having helped to create an artificial mortgage boom. Fred Smith warned Congress about this in 2000, and was ridiculed for it. Read what happened here.
2. Steven Malanga outlines the “long road to slack lending standards” and just how government encouraged this, at RealClearMarkets.
3. Thomas Sowell explains how economic-populist politicians used their power to help create the problem...
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