Cafe Hayek‘s Russ Roberts tells the House Oversight Committee that he wants his country back. Highlights of his testimony:
We are what we do — not what we wish to be, not what we say we are — but what we do. And what we do here in Washington is rescue large companies, large financial institutions, and rich people from the consequences of their mistakes. When mistakes don’t cost you anything, you do more of them. When your teenager drives drunk and wrecks the car, you keep giving him a do-over, repairing the car and handing him his keys, he’ll keep driving drunk. Washington keeps giving bad banks and Wall Street firms a do-over: ‘Here are the keys; keep driving!’ The story always ends with a crash.
We need to stop trying to imagine we can design housing markets, mortgage markets, financial markets, and compensation.
[Cross-posted at The Lesson Applied.]