Credit derivatives get the blame for everything people don’t understand. But the truth is a little more simple: Government intentionally funnelled vast amounts of money into the housing industry, grew a gargantuan housing bubble, and then pulled the rug out from under it when it became apparent that it could not be sustained. The collapse of the financial sector was not the cause of the problem. It was the result of the problem. Without the government’s efforts, there would have been no housing bubble to begin with, or in any event, it would have been a whole lot less significant.
Government intentionally funnelled vast amounts of money into the housing industry, grew a gargantuan housing bubble, and then pulled the rug out from under it when it became apparent that it could not be sustained. The collapse of the financial sector was not the cause of the problem.
Could this be spelled Barney and Chris? If so is the gallows too good for them? If not, should the complicit staffers, bill writers, bill sponsers, committee members, etc, all share in the punishment?