'Twas Government Killed the Beast
Wrong! says economist John Taylor.
Government, through bad monetary policy, both created and burst the bubble.
"The classic explanation of financial crises is that they are caused by excesses -- frequently monetary excesses -- which lead to a boom and an inevitable bust. This crisis was no different: A housing boom followed by a bust led to defaults, the implosion of mortgages and mortgage-related securities at financial institutions, and resulting financial turmoil."
Thus our King Kong economy was knocked off its perch on the Empire State Building.
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