The Real Villian

On and off, the thread of how the Great Recession came to be appears in these endeavors. The lunatic Right has, from the beginning, sought to blame Bill Clinton, long out of office when the boom started, much more so when it collapsed, and the Community Reinvestment Act (1977!). This attempt has always been propaganda, seeking to shift blame from the laissez faire W. banksters to inner city dark folks trying to buy a house. Various studies have been done over the years, and many have been mentioned here. All have put the lie to such narrative. The evil was in the white suburbs, non-bank mortgagers (CountryWide), and private mortgage insurers (MGIC). Doesn't fit the lunatic right's propaganda, of course.

Today, Mark Thoma reviews yet another study, from the Sloan School (that's MIT, by the way; another elite Eastern establishment). The Great Recession wasn't caused by poor folk trying to have a home, but by middle income white folks in white suburbs in sunny climes (Florida, Nevada, California, mostly) looking to flip McMansions that were experiencing rocketing prices. Caused by the demand for securitization instruments demanded by the Giant Pool of Money seeking high return on low risk. "Money for nuthin and the chicks are free."

The comments are replete with lunatic rightwingers bleating loudly. As it ever was.