What really caused the 2008 financial crisis?

The causes of the Great Depression of the 1930s was shrouded in political rhetoric for decades and only recently have the true causes been exposed. There is no reason the Great Recession of 2008 and the sub-prime mortgage crisis of 2008 should suffer the same fate. We know what caused these debacles but political interests and public ignorance are again cooperating in a cover up.

Fortunately, there is a scholar out there who has left a record that refutes the absolute BS that threatens to obscure who and what is responsible for the mess that began during the last years of the Bush administration. I fault George W. Bush for several things he did that I thought were absolutely boneheaded. But not this. Except for the thoroughly boneheaded TARP, The Bush administration comes off clean on the financial and sub-prime crises. If the advice of Bush and his advisors had been followed back in 2003 the whole thing would have been much less damaging. It wouldn’t have been avoided entirely because its seeds were sown much earlier, by none other than William Jefferson Clinton and Janet Reno.

The scholar who can make sense of it all is Peter Wallison. He has written two books and a long essay on it that are must reads for anyone seeking to understand this thing that America has been trying to recover from throughout the Obama years. Obama himself has not helped and in many ways has made matters worse.

Here are the links to the books and the essay:

Hidden in Plain Sight: What Really Caused the World’s Worst Financial Crisis—and Why It Could Happen Again

Bad History, Worse Policy: How a False Narrative About the Financial Crisis Led to the Dodd-Frank Act

Dissent from the Majority Report of the Financial Crisis Inquiry Commission

If you put these books and the essay on your reading list you will never have to be fooled by obsequious left-wing cocktail party blather again. OK, I guess the 2008 crsis in no longer cocktail party fare, but if you’re condemned to attend such affairs you may still encounter it from time to time, especially in any discussion about the god-like virtues of Barack Obama.

Here is an easier headstart on the project of getting wisdom and clarity on the financial mess of 2008. This is a video from the McCain campaign in 2008, but it is still and excellent source. It’s too bad McCain himself never said enough about this during the summer and fall of 2008. We might have been spared 8 years of Obama if he had. Of course, we would have been inflicted with 8 years of McCain in that case, but hindsight tells us that as bad as that probably would have been, it would have been better by comparison.

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