Saturday, May 31, 2008

Those on the right have forever argued regulate less and let the free market sort out on its own who or what should succeed and fail. Yet all too often the free market alone is not sufficient, allowing for extreme and even illegal behavior, which by the time it is "corrected" for has already resulted in massive harm.

In the case of Bear Stearns, the strident free market crowd should've been screaming from the roof tops when the Fed stepped in with its rescue. According to their logic, Bear should have been left to fail, just desserts, the invisible hand at work, etc. However, it's seemingly OK when non-free market aid is given to industry or the rich, but not individuals or Joe Main Street.

The principle should hold true regardless, but that's presupposing principles are involved here....

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