The current world-wide economic and financial crisis does not represent a failure of capitalism or of markets. It is the result of mistakes made by the U.S. Federal Reserve, aided and abetted by Congress and the Administration. Here’s an analogy that illustrates what happened.
In April, 2001, Private Sector Architects draws up plans for a three-story house. The prospective owner hires Capitalism Builders to construct it. The Free Market Sawmill is chosen to supply the lumber. The project is scheduled to take eight years. Construction begins.
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