Steven Horwitz at the Department of Economics at
St. Lawrence University has An Open Letter to my Friends on the Left (September 28, 2008) about the proper role of government in the financial markets. It is worth a careful reading.

I know, my friends, that you are concerned about corporate power. So am I. So are many of my free-market economist colleagues. We simply believe, and we think history is on our side, that the best check against corporate power is the competitve marketplace and the power of the consumer dollar (framed, of course, by legal prohibitions on force and fraud).

He provides a bit of history that has lead to the current market situation and worries about the over simplifications being espoused to ‘fix it.’

The real problem here is the marriage of corporate and state power. That is the corporatism we both oppose.

Blaming the stock panic as a result of free markets or talking about greed or thinking some savior is going to be able to make it all good are not helpful. Listen to his explanations and hear his opinions. They will both help you better understand your own.

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