A Creditor’s Playland, or: Cato on Housing Crisis Policy | Rortybomb
Mike Konczal demolishes the right-wing think tank Cato Institute for their unique brand of free-market capitalism: "I like this form of libertarianism, where policy is simply the things that defend the power and hierarchy of creditors, the rich and the elite, much better than the normal 'gee whiz markets are cool' kind. There’s almost a Nietzschean zeal for the wonk world to first and foremost accept creditors as a master class to whom all policy bends."
In this piece, Konczal is taking apart Cato's bank-friendly, consumer-hostile prescriptions for the housing market. Predictably, Cato wants to rush all the foreclosures to conclusion, never mind the fraudulent or nonexistent proof, and the banks should get deficiency judgments against people who strategically default. Public policy needs to be concerned about moral hazard you see...unless it is the banks who have the moral problems.