My favorite writer on this subject today and everyday is Matt Taibbi of Rolling Stone. He writes.
"To me all of these people were equally guilty of making bad decisions to benefit themselves in the here and now at the expense of the whole in the future. When it comes to bubbles, It Takes a Village, and blaming the whole mess on the “socialist” aims of a pair of government agencies seems off base — particularly since the Randian protocapitalists running the banks benefited every bit as much from this socialism as actual homeowners, and perhaps even more, when one considers that homeowners get foreclosed upon, while bonuses are forever."
The Red v. Blue fight which will indict all, and convict nobody, is exactly the hung jury the housing bubble creators probably hoped for. Now they will again lobby the same Congressional whores to create the new playing field from which the next bubble will form. It is very sad when the very people doing the regulating and writing the laws were the only ones to benefit from the bursting housing bubble. Nope, it was the everyday slob that was supposed to realize the "American Dream" of owning a home that was preyed upon. It wasn't the idea of helping people become home owners that was the problem, it was the out of control system that told that slob he could own a $500,000 home while earning $25k a year.
Isn't that the way history always plays out?
"Let them Eat Cake"
Krugmann adds credence to the Taibbi claim that more then the socialist aims of Fannie and Freddie are to blame for the bubble. 1-7-10