the housing bubble

[Mattlowry]

None in the housing market, that's the whole point why the Govt should get out! I agree with your observation that that there is only a distortion arising from NG and its removal would improve the functioning of that market.

I have only done two university level economics subjects but i thought it was just basic fact that in nearly all cases government intervention will cause distortions to the market..

 

[prep80]

I have only done two university level economics subjects but i thought it was just basic fact that in nearly all cases government intervention will cause distortions to the market..

I'm about to start the 3rd year of my econs degree and the microeconomic theory is that Govt internvention can cause market distortions or fix market distortions created by market failures such as externalities and public goods, pretty basic stuff really. I know there are some far right wing economic schools of thought that argue that govt interventions only create distortions but they are at the looney fringes and not mainstream economics.