Tom Sowell

The Politics of the Housing Boom

Today's recommended reading, the value of which is broadly debated, is The IBD series by the "anti-Krugman," Thomas Sowell (The Housing Boom and Bust)   Sowell may not be the only person to write objectively about what caused out current misfortune, but he's the only one I trust implicitly.   “ There were many who shared the responsibility — or, in this case, the irresponsibility — for the housing boom that was fueled by easier credit, lower mortgage approval standards and "creative" financing. Moreover, like many disasters, this one began with good intentions. At the heart of those good intentions was the quest for "affordable housing," another way of expressing the crusade for more home ownership among a wider range of people. ” One of the most damning pieces of evidence for the notion of a biased Donk-Media Complex has been, for me,  the total absence of Sowell, Sowell's ideas, and references to Sowell on the Sunday shows, or anywhere else in the broadcast media.  In a world where  where Keith Olbermann and Chris Mathews have their own shows?  Puh-leeeze.  I even came to wonder whether Sowell had a speech impediment, a squeaky girl voice, or perhaps spoke in Ebonics?  Nope.  As with Dr. Walter E Williams, Justice Clarence Thomas, et.al, it's a manifestation of Liberal media nightmares of Nat Turner run amok.  A Black intellectual whose words and ideas might cause rebellion on the plantation. Part III, the most recent in what is a five part series begins: “ In 2002, the George W. Bush administration urged Congress to pass the American Dream Downpayment Act, which subsidized the down payments of prospective home buyers whose incomes were below a certain level. After passage of that act, the president also urged Congress to pass legislation permitting the Federal Housing Administration to begin making zero-down-payment loans at low interest rates to low-income Americans. ” If you want to play catch-up -- Part I --    Housing Bust: Sowell Series Starts Today Part II --   How Little Law From '70s Brought The Financial System To Its Knees Part III --  How Fannie Mae And Freddie Mac Sank In The Subprime Quicksand