The next, worse financial crisis

Brett Arends on the next financial crisis:

Why? Here are 10 reasons.

We are learning the wrong lessons from the last one. Was the housing bubble really caused by Fannie Mae, Freddie Mac, the Community Reinvestment Act, Barney Frank, Bill Clinton, “liberals” and so on? That’s what a growing army of people now claim. There’s just one problem. If so, then how come there was a gigantic housing bubble in Spain as well? Did Barney Frank cause that, too (and while in the minority in Congress, no less!)? If so, how? And what about the giant housing bubbles in Ireland, the U.K. and Australia? All Barney Frank? And the ones across Eastern Europe, and elsewhere? I’d laugh, but tens of millions are being suckered into this piece of spin, which is being pushed in order to provide cover so the real culprits can get away. And it’s working.

via The next, worse financial crisis Brett Arends’ ROI – MarketWatch.

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Comments

  1. Matt P. says:

    Agreed, as long as people on the left agree that the same exact argument applies to the argument that the GOP lessened all that fantastic regulation thereby causing the bubble.

    • Paul Kedrosky says:

      Well, deregulation was a more global phenomenon than was Barney Frank,but I take your point. De-politicizing the nonsensical, ad hocexplanations would be a good start.

  2. Matt P. says:

    Did deregulation play a role? Sure, but not near as much as basic human greed and incompetence. There was plenty of regulation of Bernie Madoff and there was plenty of bank regulation. Same result. Could there be more, sure. Would it have made a difference….who knows but I have my doubts when little was done with the tools available anyway. In Madoff case there was a guy begging the regulators to investigate. In Lewis' The Big Short it is reported that the guys who made billions were so afraid of everything blowing up that they also notified the regulators to no avail. Of course, then we have the ratings agencies. You know a Saint Buffett investment….

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