
I have repeatedly made the argument that government intervention is counterproductive. However, politicians and federal reserve policy makers either don't accept this simple fact, or they don't care. Politicians need to look like they are trying because doing nothing -- which is the proper course of action -- makes them look helpless and inept -- which they are. The same is true for the federal reserve, but they also have a mandate to keep their member banks solvent. Most of the meddling in the markets has been done for that reason. Perhaps a few loan owners were saved along the way, but the real reason for most interventions is to keep the banks alive. I am not the only one…[READ MORE]