Tuesday, July 28, 2009

Truth in Housing

Excellent article over at the American Enterprise Blog, an interview with Thomas Sowell about his newest book, The Housing Boom and Bust. Rumbler has always been a huge Sowell fan and greatly respect his research...this one will be on the nightstand shortly. Some clips from the interview:

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.

1 comment:

Anonymous said...

are we not supposed to nothce that "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." makes literaly no sense at all?

the intervention of regulators decreased regulation, so decreased regulation was not at fault...??? is this an example of what passes for logic in your world? ouch...