Letters to the Editor
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Governmental Intervention is the Flaw of Capitalism
Capitalism works just fine thank you. All of the "problems with capitalism" stem from overeager governmental intervention that bends the outcome away from the pareto optimal outcome that a pure market provides. The "Creative Destruction" of capitalism cannot work if the government props up failing banks, and gives multi-billion dollar no-bid contracts to uncompetitive companies. Bear Stearns, for example, needs to fail in order to free up market share for new more competitive banks. Mortgage holders who bet heavily on continually rising home values need to lose, and lose big. This is how we can learn the necessary lessons to avoid this sort of disaster from happening again.
It is precisely the federal reserve's interventions that have created this problem to begin with. The solution is not more intervention, but less.