mgroves

This is just a quickie.

I though Kling made a good point in one of his posts today.

High gas prices have had the following effects via the market:

• End of free pizza delivery in many places
• Drop in SUV sales
• Drop in price of houses that are far from jobs or mass transit

Meanwhile, during 2004 when regulators first started worrying about subprime mortgages, HUD stuck with their policy allowing Freddie Mac and Fannie Mae to dish out ARM loans to low income and minority families as a being “good for the community”.

I think this is a good demonstration of how markets generally function well and how government usually just exacerbates problems. No the market isn’t perfect, but government intervention rarely helps.