Sunday, February 10, 2008

Freezing loan rates = bad idea

Freezing prices in a free market is never a good idea. Here Richard Thaler argues why Hilary Clinton's idea to freeze interest rates on subprime loans is just bad economics. I'm inclined to agree with him.

For those who are not familiar with Thaler - he is a renowned behavioral economist from U. Chicago.

Thanks to Newmark's door for this link