Critical Crisis

Monday, October 06, 2008 

As it has become common place to criticize capitalism in the current crisis – forgetting the huge responsibilities of politics – we have decided to post this new section on the crisis. You will find articles by scholars from the Cato Institute who had anticipated the current crisis for a while. These articles recall how this is a crisis of political intervention into market mechanisms :

– Fed’s "cheap money" monetary policy contributed to the forming of the bubble.

– Fannie Mae and Freddie Mac, because of their role in "social policy" were pushed by the body politic to take ever greater risk.

Watch the most penetrating insights on the financial bailouts by Cato Institute scholars here

Subprime Monetary Policy, Gerald P. O’Driscoll Jr., The Freeman. (old but highly relevant)

The Big Bailout — What Next?, Warren Coats.

Improving the Rescue Plan, William Poole, Orange County Register.

The Bailout’s Essential Brazenness, Jay Cochran.

Mislead, Daniel J. Mitchell, National Review (Online).

Lies or Ignorance?, Richard W. Rahn, Washington Times.

Bank Loans Have Not ‘Dried Up’, Alan Reynolds, Forbes.

The Perfect Financial Storm, Jagadeesh Gokhale,

Lehman Brothers and Bear Stearns: What’s the Difference?, Peter Van Doren.

Surprised by the Obvious, Richard W. Rahn, Washington Times.

Why Bailouts Scare Stocks, Alan Reynolds, New York Post.

Bailout-Mania, Jagadeesh Gokhale and Kent Smetters,

What Price Stability?, James A. Dorn, South China Morning Post.

Too Few Regulations? No, Just Ineffective Ones, Tyler Cowen, New

Washington Is Quietly Repudiating Its Debts, Gerald P. O’Driscoll Jr., The Wall Street Journal.York Times Upfront.

Too Big to Fail, or to Survive, William Poole, The New York Times.

The Fed Plays With Fire, Steve H. Hanke, Forbes.

Treasury’s Thieves, Gerald P. O’Driscoll Jr., New York Post.

Fannie Mae and Freddie Mac Should Be Cut Down and Cut Loose, Alan Reynolds, U.S. News & World Report.

End the Mortgage Duopoly, Gerald P. O’Driscoll Jr., The Wall Street Journal.

Greenspan’s Bubbles, Steve H. Hanke, FinanceAsia.

Blame the Fed, Gerald P. O’Driscoll Jr., Reason.

At the Fed, Nothing Succeeds Like Failure, George A. Selgin.

Panic Time at the Fed, Steve H. Hanke, Forbes.

The Fed Does Right, Alan Reynolds, New York Post.