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Milton J. Madison - An American Refugee Now Living in China, Where Liberty is Ascending

Federalism, Free Markets and the Liberty To Let One's Mind Wander. I Am Very Worried About the Fate of Liberty in the USA, Where Government is Taking people's Lives ____________________________________________________________________________________________ "Extremism in defense of liberty is no vice. Tolerance in the face of tyranny is no virtue." -Barry Goldwater-

Monday, July 25, 2011

Some academic work on the sub-prime crisis....

There is some interesting academic work being produced on the financial collapse of 2008. This article deals with the inside/outside theory, i think that one that is most believed by leftists, and the bubble theory, one that is probably most likely as the operative problem in 2008.

Where the article does not delve, is the government's intervention in the housing market for many many decades, its intervention in changing the rules for sub-prime lending from the 1990's on and the forcing of the GSE's to buy significant amounts of these mortgages that were normally outside of their mandate. I think that all of this were contributing factors to the bubble.

Article here.


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