Political meddling could make economy worse

Published: Thursday, July 24, 2008 12:11 a.m. MDT We don't look to arsonists to help put out fires, but we do look to politicians to help solve financial crises that they played a major role in creating. How did the government help create the current financial mess? Let me count the ways. In addition to federal laws that pressure lenders to lend to people they would not otherwise lend to, and in places where they would otherwise not invest, state and local governments have in various parts of the country so severely restricted building as to lead to skyrocketing housing prices, which in turn have led many people to resort to "creative financing" in order to buy these artificially more expensive homes. Meanwhile, the Federal Reserve System brought interest rates down to such low levels that "creative financing" with... [read full story]