It is true that the root evil here was government intervention in the economy: The Fed’s over-loose money after Dot-Bomb and 9/11, combined with tax incentives and the market-distorting actions of Fannie Mae and Freddie Mac, helped create the housing bubble; various government policies then helped turn that bubble into a global disaster. The subprime meltdown was not a failure of what is so often mischaracterized as “unbridled capitalism.” It was as much a failure of regulatory excess as of Scrooge McDuck, literally-rolling-in-it excess.
But it is not necessarily wise to start practicing austerities at the moment of crisis. Those who opposed the bailouts were, I think, seeking to restore the virtues of the free market — at precisely the wrong time. It is as though we had been diagnosed with lung cancer and responded merely by swearing off cigarettes. What about radiation therapy? What, are you crazy? Radiation gives you cancer! And people get sick in hospitals!
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Anything ancient enough to have Old Testament strictures against it is going to be with mankind forever.
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I agree with you about that quote, too. The one I put above it is also true. I’m not crazy about the initial bailout, but I do believe that we needed to do something in Oct’08 - - - the problem for the US is that we’ve overdone what we should have done in terms of spending in ‘09 - - - We should instead have given tax incentives for business (as opposed to consumer) ... though as a consumer, I surely appreciated the extra cash in my pocket, that is meaningless compared to the detriment to the jobs market the additional taxes and regulations are bringing.