My latest essay:

Financial markets will always be subject to miscalculations and mistakes. However, the more we ask politicians to provide perfect insulation from financial risk, the more fragile the system will become. That is the real lesson we should take from the Fannie and Freddie saga.

Read the whole thing. It is counterintuitive that markets are better than government at providing collective benefits. It is also counterintuitive that a top-down design process can yield a more fragile structure than an emergent decentralized process.