Who caused the credit crunch?
Just about everyone in the financial services sector has been blamed for the credit famine that has almost brought the entire world to its knees. But who really is to blame?
Over at Syntagma, John Evans lays the “seed culpability” on President Carter and President Clinton for forcing banks to lend to people who could never afford the houses they bought.
After much digging around, we can report that, contrary to many attempts to blame investment bankers, as well as retail banks and their customers for the financial fiasco, real seed culpability lies with politicians of the left interfering in the workings of what are sometimes laughingly called “free markets”.
Here’s the timeline:
1977. President Carter passed the Community Reinvestment Act …
