The Socialist Myth of Economic Bubbles

There is a wide spread belief that asset bubbles, like housing bubbles, are the result of the free market. Socialists claim that excessive risk taking on behalf of the banks, together with a lack of regulation, or even a wave of deregulation, caused the crisis of 2008.

However this is simply socialist propaganda and it does not even have the slightest element of truth. Asset bubbles arise when the peoples’ savings are misallocated, and the reason they are misallocated is always government in...