Roubini On Laissez-Faire
"To paraphrase Churchill, capitalist market economies open to trade and financial flows may be the worst economic regime--apart from the alternatives. However, while this crisis does not imply the end of market-economy capitalism, it has shown the failure of a particular model of capitalism. Namely, the laissez-faire, unregulated (or aggressively deregulated), Wild West model of free market capitalism with lack of prudential regulation, supervision of financial markets and proper provision of public goods by governments."
Oh, yeah, Roubini clearly has a point. It was clearly a big mistake to let Bush cut government spending by 90%. And it was a big blunder to let him repeal the Community Reinvestment Act and to abolish "government sponsored enterprises" Fannie Mae and Freddie Mac. Not to mention what a big mistake it was to abolish the Fed and replace it with a pure gold standard, something which prevented government from lowering interest rates to 1% after the end of the tech stock bubble. And did I mention that Bush also stopped federal subsidies to housing? If it hadn't been for those laissez-faire policies, clearly the housing bubble and the ensuing crisis would have been averted.