Friday, March 06, 2009

How We Got Into This Mess

After reading that last Niall Ferguson link, I noticed he has his own website. I went to it and read one of his (long) articles entitled Wallstreet Lays Another Egg. It is a fascinating history of economics and evaluation of how we got ourselves into this mess. Ferguson takes us, step-by-step over the conditions and decisions that set the stage and then through how bubble was blown up, where the money went, and how it popped. This is a must read if you want to learn more about what has happened.

In a nutshell, the article demonstrates how the federal government created the home mortgage business and has had to deal with numerous challenges to the system, private enterprise capitalizing on the opportunities, and all of it with the government "ready to pick up the tab in a crisis."

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