The magic of markets

Great post today by Econ blogger Mark Thoma, explaining how the "magic of markets" is limited- we can get the miracle of socially optimal production and consumption only when a variety of prerequisites are met. Along the way, it also explains how the government loan program that led to the Solyndra debacle is even now, after Solyndra's collapse, still not much of a risk to taxpayers, and in fact the program has also done some good along the way by effecting hiring during poor economic times. Take a look!