SCOT LEHIGH ("Lessons from the meltdown," Op-ed, Sept. 24) blames the current financial crisis on a failure of the free market, ignoring that our current economy is anything but free. The mortgage and financial markets have been heavily controlled by the federal government for decades, and that is why they failed.
In the name of broad social welfare policy aimed at helping everyone own a home, the federal Community Reinvestment Act forced lenders to give loans to unqualified borrowers. Meanwhile, the corrupt quasi-governmental entities of
The government forced lenders into bad decisions, rewarded them by manipulating the market, and then bailed them out when the mess came back to bite them. The federal hand in the market set it up to fail, not "zealous free-marketeers."
More regulation is not the answer. It's clear that the mixed economy - the unfree market - is what has failed. The answer is a fully free market.