White House Philosophy Stoked Mortgage Bonfire

Very long, in-depth story in last Saturday’s NY Times that examines many of the policy decisions that have been taken over the past 8 years and how they contributed to the mess we’re currently in.  This appears to be a well-researched piece, one that should especially appeal to Bush-haters.  I think it’s tough to lay all the blame at Bush’s feet, however.

Some of the policies to more broadly promote home ownership began in the Clinton Administration, although they were more constrained then.  Also, the article ignores the broader issue that turned a serious problem into a devastating one: the lack of regulations in the investment banking and hedge fund industries and the use of derivatives that have indeed turned out to be “financial weapons of mass destruction”.

Nevertheless, the article does paint a good picture of how an unfettered belief in free markets can be dangerous.


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