NS: What is the greatest popular misconception about the boom and subsequent bust?
TS: The biggest popular misconception about the housing boom and bust is that it was due to a lack of regulation. In reality, it was precisely the intervention of federal regulators that caused traditional mortgage lending standards to be reduced, leading to sales of homes to many people who either could not or would not pay for them.
NS: What if anything has surprised you about this whole episode?
TS: What most surprised me about this episode has been the utter gullibility of the media in accepting Washington politicians’ attempt to put blame on everybody except themselves.