Put on asbestos mittens and pick up “Reckless Endangerment,” the scalding new book by Gretchen Morgenson, a New York Times columnist, and Joshua Rosner, a housing finance expert. They will introduce you to James A. Johnson, an emblem of the administrative state that liberals admire.
The book’s subtitle could be: “Cry ”˜Compassion’ and Let Slip the Dogs of Cupidity.” Or: “How James Johnson and Others (Mostly Democrats) Made the Great Recession.” The book is another cautionary tale about government’s terrifying self-confidence. It is, the authors say, “a story of what happens when Washington decides, in its infinite wisdom, that every living, breathing citizen should own a home.”
Some recent bloggers on this site have complained about partisan politics. Then this should be a book they will love. I have not read it, but I will. But the essentials of the story are known, as Mr. Will provides. Bottom line, you have a Federal Govt basking in the embracing breeze of social engineering, with both major political parties drinking the kool aid. The best quote is “profits are mine, the losses go to the govt” [a little paraphrase there].
Basically, all these folks bet their theories of social engineering using my and your money. Hey, an easy bet when the bank window pays you the bonus no matter what the results [good intentions count, not the outcome].
In an earlier, more earthy society, a few folks named in the book would be hanging from trees.
OK all. While you’re at it, provide a link to the much more balanced coverage of the book on The Newshour, including an interview with the authors. The substance of the book is presented fully and completely — without Will’s overriding ideological compulsion need to turn it into a critique of the Democrats (I remember President Bush buying into the rhetoric as well; also, as I recall, there were at least a few other players in the financial crisis alongside Fannie and Freddie). There was a day when both Will and Friedman were great journalists. Alas.
It’s a little more complicated. The CRA is widely blamed, but it had very little effect on housing, although it did contribute to an overall lessening of credit standards. The greater factor, as noted by both Morgenson and Will was the study that showed minorities being rejected for loans at a greater rate than whites. Once the predictable cries of “Racism!” died down, further analysis showed that the discrepancies could be explained by other objective factors, such as credit score, debt ratios, etc. But the bell could not be un-rung. Lenders, who discovered how profitable it could be to rip off poorer folks, jumped on the subprime bandwagon. Note that Fannie/Freddie did not do subprime, but late in the boom they did buy $4-500 mil subprime, probably due to political pressure; many of those took large losses.
You mean a lot of Democrats were responsible for the great recession? I thought that the Republicans “drove the car into the ditch and now want the keys back.”
Okay, I’m done with T19. The coupling of secular politics to blogging about the church is just too much for me. I don’t know who you are Kendall, but whatever you may seriously have to say about the church is negated by your consistent right-leaning politics, in the selection of your posts. One would hope (and expect) for more from a servant of Christ.
Christians have to be left leaning? I didn’t realize that. Thanks!
PeterL, if you drop by again and are curious about who Kendall+ is, there is a wikipedia article: [url=http://en.wikipedia.org/wiki/Kendall_Harmon ]Kendall Harmon[/url]. (The link on the left, “Kendall’s bio” is broken.)
Sigh! Here you have a major national crisis where there is plenty of blame to spread around both major political parties and where you can affix a central cause once one strips away all the fog of sophistry and political righteousness………and still the complaints;
[i]without Will’s overriding ideological compulsion need to turn it into a critique of the Democrats (I remember President Bush buying into the rhetoric as well[/i] , I think that was spelled out in Will’s article
[i]Okay, I’m done with T19. The coupling of secular politics to blogging about the church is just too much for me[/i] Kendall+ has never claimed his blog was only about the church, but beyond that, those who think the church and politics don’t mix are for one reason or another ignoring history; religion and politics are always intertwined because they are the two great works of humanity.
We do live in interesting times. But on this date over 200 years ago, some very brave folks put pen to paper to declare their independence from governmental tyranny and further opined that [i]all Men are create equal, and are endowed by their Creator with certain unalienable rights, that among these are Life, Liberty, and the Pursuit of Happiness……..[/i]
From the Collect of the Day [i]Lord God Almighty, in whose Name the founders of this
country won liberty for themselves and for us, and lit the
torch of freedom for nations then unborn: Grant that we and
all the people of this land may have grace to maintain our
liberties in righteousness and peace; through Jesus Christ our
Lord, who lives and reigns with you and the Holy Spirit, one
God, for ever and ever. Amen.[/i]
“I remember President Bush buying into the rhetoric as well; also, as I recall, there were at least a few other players in the financial crisis alongside Fannie and Freddie.”
Here is a [url=http://www.youtube.com/watch?v=cMnSp4qEXNM ]video with Bush administration officials talking about the need to reign in Fannie and Freddie[/url] as far back as 2001, and Barney Frank rejecting any [i]alarmist[/i] talk their financial soundness and “even if they fall, the federal government won’t need to bail them out”.
Here is a [url=http://www.opensecrets.org/news/2008/07/top-senate-recipients-of-fanni.html ]list[/url] of recipients of campaign money from Fannie and Freddie before the collapse – almost all Democrats and with a few RINO’s, Senator Obama is #3, and Sen Hillary Clinton is #4. Why were the government sponsored enterprises even allowed to contribute to campaigns?
And #8, who can forget that infamous declaration from Maxine Waters that there “is no crisis at Fannie Mae”?
http://www.youtube.com/watch?v=3sKpzmojjfU
So right, Captain. Why is the corruptocrat Maxine Waters still in congress? I thought Pelosi was going to drain the swamp? [url=http://www.youtube.com/watch?v=y4A0RuXhnQA ]Here is a video[/url] of 2004 hearings where that video clip was part of, showing democrat after democrat assailing the author of a report critical of Fannie and Freddie.