Wednesday, October 29, 2008
Recommended reading for the crisis
The government, led by the Fed and Treasury, is intervening massively to avoid a necessary correction. The implicit premise of its actions is that a correction would ruin us economically. It wouldn't. It would be painful for awhile, but market mechanisms would put the economy on a path to a sound recovery. Interventionism invariably begets more interventionism until the economy becomes a completely state-run bureacracy.
The fundamental issues of the financial crisis are money and banking. And the best primer I know of for understanding these issues is Murray Rothbard's What Has Government Done to Our Money?
In addition, permit me to recommend my own work, The Flight of the Barbarous Relic, which treats the issues in fictional form.