It is remarkable how many political “solutions” today are dealing with problems created by previous political “solutions.” Three examples that come to mind immediately are the housing market crisis, the wildfires in southern California, and the water shortages in the west…

…Study after study has shown that housing prices are highest where government restrictions on building are the most severe. That is the ugly result of pretty words like “open space.”

Why were lenders lending to people whose prospects of repaying the loans were below average — that is, “subprime”?

Government laws and policies, especially the Community Reinvestment Act, pressured lenders to invest in people and places where they would not invest otherwise. Government also created the temporarily very low interest rates that made the mortgages seem affordable for the moment.

Now that politicians have created this mess, they are ready to play heroes riding to the rescue.

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