The Failure of Laissez-Faire Economics or the Failure to Think?

The collapse of the economy in the Great Recession gave us the starkest, most painful evidence imaginable of the failure of laissez-faire economics and the destructive force of the alliance of big business and government against the interests of ordinary Americans.
NYT, Bob Herbert: When Greatness Slips Away

This is the nonsense that passes as informed opinion. Laissez-faire capitalism did not create Fannie Mae and Freddie Mac; laissez-faire capitalism would not have the government force banks to create sub-prime mortgages nor would laissez-faire capitalism have the government force banks to make these loans.

If the banks didn’t issue the sub-prime loans they would have been considered to be non-compliant (ie: be fined and/or forced out of business).

Clearly the sub-prime mortgage crisis is a result of government regulation, a result of government policy - not the result of laissez-faire capitalism.

Economic Eco-System is as Fragile as the Natural Eco-System

Economic Eco-System is as Fragile as the Natural Eco-System in that a few simple and apparently innocuous changes can bring about a collapse of that system. We constantly hear the refrain of how rich the US is and how it's shameful that we don't help our brothers in need. Well, here's a few quotes from Andrew Cuomo, the Housing Urban Development Secretary under Bill Clinton talking about forcing banks to give loans to unqualified people.

Some may say that the moneys involved in this example, 2.1 billion, is so insignificant in comparison to Enron and other scandals that it's not even worthy of being mentioned. These individuals forget that when the government forces one group of people, or one company, to act in a certain way others follow suit to avoid being put under the government's gun. The issue is not only this "paltry" 2.1 billion but all future business activity which was influenced by this and other actions.

You can see the entire CSPAN interview CSPAN: Housing Discrimination April 3, 1998