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> Many bubbles are caused by government actions. Our own housing bubble was fomented by numerous bad policies.

If the "government action" in question is deregulation that allows the market to blow itself up, do you want to chalk that event up to market failure or government action?

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If by "dereguation" you mean creating government agencies like Freddie Mac and Fannie Mae, which sole purpose was dissorting mortgage market by allowing banks to offset risk from subprime loans, then yes, last crysis was caused by deregulation :) And of course road to hell is paved with good intentions: government was only trying to make houses more affordable to even the poorest Americans.

And even without such special-purpose institutions government can cause market bubbles by nothing more than its "monetary policy" and artificially induced inflation.

> If by "dereguation" you mean creating government agencies like Freddie Mac and Fannie Mae

I don't.

I always found it astounding, that all those extremists rather prefer to dwell in this nightmarish bureaucratic western democracies, while paradises are abundant. North Korea, if you fance the Communistic spectrum, somalia if you are a libertarian and plenty of religious outliers to live the life of ones dreams. And yet, here they are..

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