Quotes of the day

A few weeks ago, I was talking to a well-respected journalist who doesn't cover financial matters. She was pushing me for the culprit behind this mess, and was unsatisfied when I pointed out that there were a lot of good reasons to make most of these bad decisions. Ultimately she cried in frustration, "but somebody must have done it!" This is how we approach the problem: we want villains, guilt, punishment. But when systems fail, they usually fail systemically. If one person, even Alan Greenspan, could bring down the entire edifice, then we'd be in massive trouble, so we should be grateful that it isn't the case. --Megan McArdle

The traditional libertarian solution for corrupt government is Constitutional restrictions on government activity. Smaller government means smaller scope for corruption. I am not sure I believe that the traditional libertarian solution works. I suspect that what really makes for limited government is the opportunity for exit. In the early 1800's, it was possible for an American to pick up and move to a remote area where government had very little impact. That possibility tended to limit the power of the central government. ... Picture civil society as a nice lawn, and picture government as a weed. As the weed grows, the lawn gets wiped out.--Arnold Kling

So who is most (ir)rational, my ten-year old, the fat-ten year old or the great Gary Becker?--Alex Tabarrok