Washington intervention caused the 2008 collapse. @JohnTamny @RealClearMarkets

Sep 14, 01:19 AM


(PhotoCrater from the 1962 "Sedan" nuclear test as part of Operation Plowshare. The 104 kiloton blast displaced 12 million tons of earth and created a crater 320 feet deep and 1,280 feet wide. (Look to the size of the roads in the bottom-right of the picture, and the observation deck at the lower-right edge of the crater, for a sense of scale)

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Twitter: @BatchelorShow

Washington intervention caused the 2008 collapse.  @JohnTamny @RealClearMarkets


The retrospectives about 2008 are pouring in, and most continue to promote false narratives. The idea that the Fed's rate policies caused the economy-sapping rush into housing consumption is as easy to discredit as is the idea that housing's moderation caused markets to crater. As for the notion that a failure on the part of the feds to save Lehman being the cause of market upheaval, that's the Silicon Valley equivalent of suggesting that the region was weakened by the failures of Friendster, eToys and Webvan. Seemingly forgotten is that economies and markets gain crucial strength from periods of weakness and business failure. The latter is the only way for the bad and mediocre to be replaced by the good and brilliant. It's a reminder that there was nothing "financial" about '08. Government intervention in the natural workings of markets isn't situationally good. It always brings on peril. Logically it did in '08. The opinion piece can be found here.