Subprime Mortgage Crisis caused by REGULATIONS???

Here is an interesting article written by an economist and free market supporter. http://myslu.stlawu.edu/~shorwitz/open_letter.htm. I don't know much about the author, only that a good friend sent my partner this link and it is an interesting approach to the current economic crisis. And the more I think about it, the more convincing it is.

Basically, the point of the article is that the bailout is a bad idea. These giant companies that the bailout is intending to assist, went under because of government regulations. Thus, we should not be asking for more regulations that caused this mess in the first place. He feels that free market competition will eliminate the problems caused by these regulations, which only served to promote unsavory business practices, like requiring Fannie Mae and Freddie Mack to lend to borrowers in low income communities (Community Reinvestment Act of 1977.

I don't completely trust him, but I tend to think that these companies had a say in these regulations as well as unsavory friends in the government who did not have the public in their best interest. I don't think we can do away with regulation, and we certainly have to think more about which regulations to make. That said, I tend to agree with the author about the bailout. That money could be put to better use.