EZ Credit

The root cause of the current financial woes is, of course, easy credit. Not that easy credit is bad: the Invisible Hand sometimes allows easy credit. It’s when governments try to force easy credit that things go awry. Why don’t we learn? There is a reason: events unfold slowly and we’re always willing to believe that this time is different. To see how the current mess with housing exploded in slow motion, you should read Kling’s great imaginary testimony to Congress. I’m glad he didn’t waste his time. His words would have fallen on deaf ears.

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