Friday, June 24, 2011

Leather-Politics : Message: The Real Culprits

From the book review:

More recently we've witnessed the creation of a new historical narrative about the financial crisis of 2008. The perceived history, eagerly peddled by liberals and Democrats, is that the crash of 2008 was the result of Wall Street's greed. It was unregulated capitalism that brought us to the brink of financial meltdown, the Democrats insisted. And they codified their manufactured history into a law, the Dodd-Frank Act, that completely avoided the true problem.

It's both surprising and gratifying therefore to report that a great revisionist history has just been published by none other than a New York Timesreporter, Gretchen Morgenson, and a financial analyst, Joshua Rosner.

In Reckless Endangerment, Morgenson and Rosner offer considerable censure for reckless bankers, lax rating agencies, captured regulators, and unscrupulous businessmen. But the greatest responsibility for the collapse of the housing market and the near "Armageddon" of the American economy belongs to Fannie Mae and Freddie Mac and to the politicians who created and protected them. With a couple of prominent exceptions, the politicians were Democrats claiming to do good for the poor. Along the way, they enriched themselves and their friends, stuffed their campaign coffers, and resisted all attempts to enforce market discipline. When the inevitable collapse arrived, the entire economy suffered, but no one more than the poor.

Leather-Politics : Message: The Real Culprits