Setting the record straight about the origin of the 'financial crisis'

The Obamabots, the "progressives", and the "we need more regulation and government control" freaks have been, and continue to be WRONG about the crisis.

Indeed, they helped create the crisis by such nonsense as the CRA and subsequent vote-buying interference disguised as policy, and their continued wrong-headed campaign has actually made the situation worse. Plus, as is now apparently clear to people like CBO, their "fix" will make the situation worse.....likely MUCH worse.

But we knew that already, didn't we?

John Taylor:

"The realization by the public that the government's intervention plan had not been fully thought through, and the official story that the economy was tanking, likely led to the panic seen in the next few weeks. And this was likely amplified by the ad hoc decisions to support some financial institutions and not others and unclear, seemingly fear-based explanations of programs to address the crisis. What was the rationale for intervening with Bear Stearns, then not with Lehman, and then again with AIG? What would guide the operations of the TARP?

It did not have to be this way. To prevent misguided actions in the future, it is urgent that we return to sound principles of monetary policy, basing government interventions on clearly stated diagnoses and predictable frameworks for government actions.

Massive responses with little explanation will probably make things worse. That is the lesson from this crisis so far."

Most of what we've heard" from government officials" (read "political hacks"), and from so-called Dem/Lefty/"Progressive" bloggers/"experts" has been nothing less than pure trash, motivated by a desire to take advantage of events for purely political agenda reasons. In particular, doomer/gloomer negative talk since late 2007 was specifically designed to undercut the chances of a Republican presidential candidate's election last November. In cooperation with influential people inside and outsode the government, they succeeded.

Today we get word from Ed Cone, one of the largest local purveyors of mis-information about this subject. He intends to write a forthcoming N&R column about "doomers and deniers".

In recent months, I've been giving Cone the exact level of attention his work usually merits: little to none.

That may be about to change, particularly based upon his own doomer/gloomer attitude of the last 18 months, and the possible portent of the column mentioned above.

This is going to be interesting.

Stay tuned.....