I think the current crisis was caused by too much intervention (pressure on housing companies, poorly written accounting regulations forcing avoidance methods like the "toxic" credit instruments, invincibility of Freddie Mac/Fannie Mae leading to unlimited loans, artificially low interest rates, existence of Chapter 11).
The only way to solve it is to end all bailouts, reduce regulation*, end subsidies, end customs duties, end government sponsorship of banks, end unbalanced taxes like upper limits on income tax, and then DO NOTHING for a few years. That last part is important: constantly changing rules for good or bad causes market instability.
*That is, regulation on credit and trade, and subsidies. I'm all for consumer protection, antitrust laws, mandatory government and corporation transparency and other things that don't affect the flow of money but do increase the ability of the market to spot fraud and deception.
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