Thursday, September 25, 2008

Last gasp of the free-marketeers

One of the few upsides of the financial meltdown has been the humor provided from hardcore libertarians trying to cope with their complete loss of credibility. As soon as the bailout deal came down, thousands of bow tie-wearing young men cried out in unison, "If only we had REAL capitalism."

You know, real capitalism. The kind that exists solely in the imaginations of econ majors.

At any rate, one of their favorite scapegoats has been something called the Community Reinvestment Act, a piece of Carter-era legislation "enacted in response to both intentional redlining and structural barriers to credit for low-income communities." According to the Ayn Rand set, this single piece of legislation is the source of our woes. Fortunately, Robert Gordon from American Prospect has set the record straight.

Forget it free-marketeers, the jig is up. The protests have already begun. Back to the political wilderness with ye!