Crisis of "Distorted Markets"

Now that we have problems in the market, there seems to be a hue and cry for more regulation and government support, more government involvement in the economy. The only problem with this is that government interference is what caused this problem in the first place.

In an effort to foster "fairness" in lending, the Federal government passed rules and encouraged bad lending practices. Fannie Mae and Freddie Mac were set up to help offer guarantees on some of these bad loans. Freddie and Fannie were interfering with the markets and it blew up in all of our faces.

Now, if government interference caused the problem, with more interference fix the problem? I don't think so. Distorted markets are what got it into this problem and further distorting them can only bring more trouble.