WWHD: What Would Hayek Do?

Here’s a clue, from the F.A. Hayek Professor at St Louis, Larry White, writing on Cato Unbound on the causes of and paths out of the financial crisis:

The housing-finance boom and bust are not the results of a laissez-faire monetary and financial system. We didn’t have one. The boom and bust happened in a system with an unanchored government fiat money and extensive legal restrictions on financial intermediation.
…
We should be guided by recognizing the two chief errors that have been made. Cheap-money policies by the Federal Reserve System do not produce a sustainable prosperity. Hiding the cost of mortgage subsidies off-budget, as by imposing “affordable housing” regulatory mandates on banks and by providing implicit taxpayer guarantees on Fannie Mae and Freddie Mac bonds, does not give us more housing at nobody’s expense.

Which is exactly the story as far as I understand it, too.  The whole thing is really enlightening, with lots of facts and figures, without going too far into inaccessible ivory tower thinking.  Tenure the Hayek Professor, I say.