I realize Guarino’s walked down this path, but Thomas Sowell, apprearing in today’s N&R, nails the lending crisis.
Sowell’s last paragraph sums it up well:
Now that this whole situation has blown up in everybody’s face, the government intervention that brought on this disaster in the first place is supposed to save the day.
That’s basically the situation with Fannie Mae and Freddie Mac, right? I realize they’ve been privatized, but it’s still the government bailing out the government. The bottom line is government has always had an interest in getting people into homes who otherwise couldn’t afford them. Then you have a big-government guy like Paul Krugman turn around and say, oh well, home ownership just isn’t for everyone.
I don’t get it. Help me out if I’m missing something.
