What's your solution [to fix the economy]?

After all the hoopla over the supposed credit crunch and the ensuing panic in Washington, and the sideshow during the election, and the bail out package that went from three pages to 400+ pages and 700Bn to 850Bn someone asked me "what's your solution?"

Simple, a return to fiscal sanity. Allow the free market to be free again!

Bankers and money lenders have known for a very long time the indicators that single a good credit risk and a bad one. The government has no place dictating to lenders what their business criteria should be. This has utterly failed us, as you can see.

Freedom dictates that people be able to use their own judgment when disposing of their private property. For the government to regulate otherwise is for the government to claim ownership of that property.

Let the banks stand or fall on their own merits. This is how the system improves itself. Government has universally failed in any efforts to be smarter than the market and this track record alone should be enough to have the people marching in the streets demanding that government stay out of our banks.

Beyond the track record is the violation of rights. Here too the government has it wrong. There is no right to borrow money. There is only the right to lend money. The government has attempted to manufacture a right where none exists. Whenever the government manufactures a right, then the laws of the underlying system, in this case economics, are ignored. Mind you, those laws do not cease to operate, they are just covered over, in this case by bad paper money. Eventually those laws assert themselves once again, and always, like now, the house of cards that the government has built comes tumbling down.

My solution? Stop pretending the laws of economics are anything other than immutable laws. Stop wishing that enough government regulation can force an outcome of anything other than what the laws predict. Economics is deterministic. You can cost yourself a fortune pretending otherwise, or worth within the bounds of those laws.

Return to sanity.

Allow the free market to be free again.