John Whitehead on the bailout

From a post by John Whitehead on the Environmental Economics blog:

The […] problem is that the bailout reveals that free markets don’t really work well, at least in the sense that free markets won’t lead to an avoidance of booms and busts. If unregulated free markets don’t really work in the one place where they might, finance, then how are they expected to work well to solve environmental problems and allocate health care efficiently? My opinion is that financial, environmental and health care markets can be nudged toward efficiency with a little bit of regulation.

Of course, such a statement stirs discussion; the comment section to the post is quite interesting and even funny. John Whitehead is a professor of economics at the Appalachian State University. He is also one of the people behind the Environmental Economics blog.

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