{"id":444,"date":"2008-09-22T10:22:13","date_gmt":"2008-09-22T14:22:13","guid":{"rendered":"http:\/\/www.jasetaro.com\/blog\/?p=444"},"modified":"2008-09-22T10:22:13","modified_gmt":"2008-09-22T14:22:13","slug":"credit-crisis-redux","status":"publish","type":"post","link":"https:\/\/www.jasetaro.com\/blog\/2008\/09\/22\/credit-crisis-redux\/","title":{"rendered":"Credit Crisis Redux"},"content":{"rendered":"<p>Today&#8217;s Wall Street Journal takes a look at our <a title=\"Read &quot;A Mortgage Fable&quot; at wsj.com.\" href=\"http:\/\/online.wsj.com\/article\/SB122204078161261183.html\" target=\"_blank\">current credit crisis and how we got here<\/a>. Among the culprits the Journal identifies:<\/p>\n<ul>\n<li>The Federal Reserve.<\/li>\n<li>Fannie Mae and Freddie Mac.<\/li>\n<li>A credit-rating oligopoly.<\/li>\n<li>Banking regulators.<\/li>\n<li>The Community Reinvestment Act.<\/li>\n<\/ul>\n<p>The conclude their analisys by thusly:<\/p>\n<blockquote><p>We could cite other Washington policies, including the political agitation  for &#8220;mark-to-market&#8221; accounting that has forced firms to record losses after  ratings downgrades even if the assets haven&#8217;t been sold. But these are some of  the main lowlights.<\/p>\n<p>Our point here isn&#8217;t to absolve Wall Street or pretend there weren&#8217;t private  excesses. But the investment mistakes would surely have been less extreme, and  ultimately their damage more containable, if not for the enormous political  support and subsidy for mortgage credit. Beware politicians who peddle fables  that cast themselves as the heroes.<\/p><\/blockquote>\n<p>Which is a point I&#8217;ve tried to make several times&#8230; Yes greed and mismanagement played a part but they didn&#8217;t create the problem. The roots of our credit crisis lie in bad or short sighted government policy. It isn&#8217;t lack of government regulation that got us here it was bad regulation.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Today&#8217;s Wall Street Journal takes a look at our current credit crisis and how we got here. Among the culprits the Journal identifies: The Federal Reserve. Fannie Mae and Freddie Mac. A credit-rating oligopoly. Banking regulators. The Community Reinvestment Act. The conclude their analisys by thusly: We could cite other Washington policies, including the political [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[26,7],"tags":[129],"class_list":{"0":"post-444","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-economy","7":"category-politics","8":"tag-credit-crisis","9":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pfpI7-7a","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":477,"url":"https:\/\/www.jasetaro.com\/blog\/2008\/09\/25\/newsflash-wall-street-journal-reporting-agreement-in-principle-is-reached-on-700-billion-bailout\/","url_meta":{"origin":444,"position":0},"title":"Newsflash: Wall Street Journal Reporting Agreement in Principle Is Reached on $700 Billion Bailout","author":"Jeff","date":"September 25, 2008","format":false,"excerpt":"From the Wall Street Journal: Congress reached an agreement in principle on a $700 billion package to bail out the financial industry, leaders from both parties said Thursday. They plan to present the deal to the White House later Thursday, hoping for a vote within days. Lawmakers said there were\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1096,"url":"https:\/\/www.jasetaro.com\/blog\/2008\/12\/11\/wsj-congress-whitewashing-fannie-and-freddie\/","url_meta":{"origin":444,"position":1},"title":"WSJ: Congress Whitewashing Fannie and Freddie","author":"Jeff","date":"December 11, 2008","format":false,"excerpt":"With all the buzz about the Feds corruption probe of Gov. Illinois Rod Blagojevich it's easy for things like this Wall Street Journal column to be missed. Whitewashing Fannie Mae Congress begins its self-absolution campaign. Henry Waxman's House Committee on Oversight and Government Reform met Tuesday to examine \"The Role\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2486,"url":"https:\/\/www.jasetaro.com\/blog\/2009\/07\/07\/anatomy-of-a-crisis-the-fannie-mae-and-freddie-mac-debacle\/","url_meta":{"origin":444,"position":2},"title":"Anatomy of a Crisis: The Fannie Mae and Freddie Mac Debacle","author":"Jeff","date":"July 7, 2009","format":false,"excerpt":"Republican members of the House Committee on Oversight and Government Reform have released a report analyzing the role of the government sponsored enterprises (GSE), Fannie Mae and Freddie Mac, in the housing meltdown. You can read the full report here, but here are the highlights: Political pressure led to the\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":858,"url":"https:\/\/www.jasetaro.com\/blog\/2008\/10\/27\/wall-street-journal-almost-everyone-would-do-better-under-the-mccain-health-plan\/","url_meta":{"origin":444,"position":3},"title":"Wall Street Journal: Almost Everyone Would Do Better Under the McCain Health Plan","author":"Jeff","date":"October 27, 2008","format":false,"excerpt":"Robert Carroll has a must read Op Ed on John McCain's health care plan in today's Wall Street Journal. Carroll does and excellent job of explaining what may be the single most misunderstood and misrepresented proposal of this election... The bottom line is most of us would do better under\u2026","rel":"","context":"In &quot;Health Care&quot;","block_context":{"text":"Health Care","link":"https:\/\/www.jasetaro.com\/blog\/category\/health-care\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":469,"url":"https:\/\/www.jasetaro.com\/blog\/2008\/09\/24\/anatomy-of-a-crisis\/","url_meta":{"origin":444,"position":4},"title":"Anatomy of a Crisis","author":"Jeff","date":"September 24, 2008","format":false,"excerpt":"The more I think about the Bush Administration's proposed 700 billion dollar back bailout the madder I get. The \"credit crisis\" wasn't created by by greed and mismanagement on Wall Street. It was created by politicians who thought they could substitute well intentioned politically correct regulation for sound financial practices.\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1075,"url":"https:\/\/www.jasetaro.com\/blog\/2008\/12\/09\/my-give-a-damns-busted\/","url_meta":{"origin":444,"position":5},"title":"My Give a Damn&#8217;s Busted","author":"Jeff","date":"December 9, 2008","format":false,"excerpt":"I haven't been blogging much recently I've tied up a couple of projects that have to be finished before the end of the year, and frankly I'm so disgusted, disappointed and disillusioned with the behavior of our elected leaders my give a damn's busted. It doesn't matter what we think,\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/posts\/444","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/comments?post=444"}],"version-history":[{"count":0,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/posts\/444\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/media?parent=444"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/categories?post=444"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/tags?post=444"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}