Ron Paul explains the Economic Mess

Here is an editorial by Ron Paul on the bailout. While I personally like Ron Paul's philosophy an and views, I find that so many of of his other supporters are just whacko. Anyway, it looks like he has economic problem well analyzed. Here are some quotes:

Laws passed by Congress such as the Community Reinvestment Act required banks to make loans to previously underserved segments of their communities, thus forcing banks to lend to people who normally would be rejected as bad credit risks.

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The government doesn't like this [the fact that the market correcting itself producers winners and losers], however, and undertakes measures to keep prices artificially inflated. This was why the Great Depression was as long and drawn out in this country as it was.

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Using trillions of dollars of taxpayer money to purchase illusory short-term security, the government is actually ensuring even greater instability in the financial system in the long term.

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The solution to the problem is to end government meddling in the market. Government intervention leads to distortions in the market, and government reacts to each distortion by enacting new laws and regulations, which create their own distortions, and so on ad infinitum.

It is time this process is put to an end. But the government cannot just sit back idly and let the bust occur. It must actively roll back stifling laws and regulations...