At least the Washington Post is willing to publish someone who won’t help to push the line of the political establishment that the crisis is due to “deregulation” and “laissez faire philosophy.” Here is a clear-eyed piece by James Grant published in yesterday’s paper.
The economic distortions brought about by years of extremely cheap credit due to the Fed, steered into the housing industry by those wonderful GOVERNMENT-SPONSORED ENTITIES Fannie Mae and Freddie Mac and specifically loans to low-income people thanks to the Community Reinvestment Act, will take years to recover from. What we can anticipate is that the culprits in Washington will keep struggling to make the public think that the trouble is all due to “deregulation” forced by those “free market Republicans.” Bush will be cast as Hoover, responsible for all economic woes.
