Sunday, September 28, 2008

Essential Reading.

Enormous spin is being applied by the Democrat Congressional Politburo on the "causes" of the Mortgage Meltdown. Investor's Business Daily has published a five-part history of the disaster, whose genesis can be traced as far back as the late '70s. It's a story of good intentions (expanding home ownership), employing delusional economic ideas (one can loan money to people who will likely default; marketing securities based on these risky mortages), and strong-arm partisan politics (the stonewalling of effective oversight by Fannie and Freddy through the purchase of political protection).

Brace yourself against the fierce winds that will be blowing, claiming that "the private sector got us in this mess, and government will get us out".* And read the IBD special reports.

*Recent discharge by Barney Frank.

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