On the banking crisis, governments should step aside and let the free market fix it

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Margaret Thatcher said, famously, the problem with socialism is that eventually you run out of other people’s money

Two famous sayings perfectly frame the struggle to smooth the bumpy road ahead for the U.S. banking system in the wake of the failures ofThe first, “We’re from the government and we’re here to help,” is a claim so preposterous that it has become a popular if somewhat clichéd exemplar of a hollow promise.

There are so many things wrong with this sort of regulatory extremism. And it’s discouraging that someone with such sterling credentials as Ms. Yellen, a former chair of the Federal Reserve and the White House Council of Economic Advisers, would be dragged into such quicksand. But if you really believe the Biden administration’s talking point that the average American won’t pay a dime to cover the shortfall, well, there’s a bridge in Brooklyn I’d like to sell you – at a 7-per-cent mortgage rate.

We shouldn’t be surprised. These are the same people who thought the federal government did a good job managing. They also believed Mr. Biden’s cancelling of hundreds of billions of dollars in student loan debt would come with few economic consequences. It’s completely plausible that they would buy Ms. Yellen’s fuzzy math.

 

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You could do that, but the rapid pace of technology will result in large segments of the population falling into poverty when their job …or their savings… disappear. You cannot operate a “civil” society without the interference of governments to mitigate that. Like it or not.

I can't read the article, but the headline is right. Every time the government 'fixes' something makes it worse.

This is exactly how it was broken and badly placed a lot of things in danger because the free market went wild west.

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