Sucked into the maelstrom

As more banks, mortgage companies, investment houses, etc. are sucked into the maelstrom known as the credit bubble collapse, people wonder: what should be done? After all, some say it's like a perfect storm: oil at almost $100 a barrel, real estate foreclosures way up, big investment companies writing down billions in losses, the dollar collapsing, and threats by foreign nations to move away from the dollar.

Maybe the government should pull an early 1970's Nixon: a 90-day wage and price freeze. Then gas and food can't go up - sounds good, doesn't it? Might sound good, but that would lead to more pain. In fact, the government should do nothing but let the malinvestment wash itself out. It will be painful, but forestalling the pain only makes it worse. Watch the Republican debate Wednesday night, and see who brings up the subject. Only Ron Paul, who understands the markets and the Fed, will. He's the only one with the courage to talk about it.