Alex Epstein has wonderful op-ed on Obama's (and the Left's) attempt to blame our current crisis on the free market, and not on Big Government:
Misrepresenting “How We Arrived at This Moment”"For example, Obama’s core explanation of all the destructive behavior leading up to today’s crisis is that the market was too free. But the market that led to today’s crisis was systematically manipulated by government. Fact: this decade saw drastic attempts by the government to control the housing and financial markets--via a Federal Reserve that cut interest rates to all-time lows, and via a gigantic increase in Fannie Mae and Freddie Mac’s size and influence. Fact: through these entities, the government sought to “stimulate the economy” and promote homeownership (sound familiar?) by artificially extending cheap credit to home-buyers. Fact: most of the (very few) economists who actually predicted the financial crisis blame Fed policy or housing policy for inflating a bubble that was bound to collapse.
"How does all this evidence factor into Obama’s understanding of “how we arrived at this moment”? It doesn’t. Not once, during the solemn 52 minutes and 5,902 words of his speech to Congress did he mention the Fed, Fannie, or Freddie. Not once did he suggest that government manipulation of markets could have any possible role in the present crisis. He just went full steam ahead and called for more spending, more intervention, and more government housing programs as the solution.
"But a genuine explanation of the financial crisis must take into account all the facts. What role did the Fed play? What about Fannie and Freddie? To be sure, some companies and CEOs seem to have made irrational business decisions. Was the primary cause “greed,” as so many claim--and what does this even mean? Or was the primary cause government intervention like artificially low interest rates, which distorted economic decision-making and encouraged less competent and more reckless companies and CEOs while marginalizing and paralyzing the more competent ones?"
As Yaron Brook recently said, we are not living in a free market. We are in the midst of government caused political crisis, which is effecting production!
The Credit Card Battle