Sowell is too much of a gentleman to say so but the problem has been and continues to be systemic fraud. Not in the sense that some one is stealing out of the till every night after the store closes – although there is plenty of that going on as well – but in the sense that an economic model of reality has been constructed that is false and has been imposed on the world from the top down.
The politicians – of both parties – resemble nothing so much as a bunch of apes trying to pound square pegs into round holes and just when you think that the TEA party may have some good ideas they reveal themselves as merely genus pan rather than genus pongo.
H. G. Wells concluded that human history was a race between stupidity and catastrophe and our only amendment to that would be that catastrophe is the horse and stupidity is the jockey!
The housing boom and bust Thomas Sowell Housing Prices United States New York : Basic Books, c 2009 Hardcover. 1st ed. and printing. vii, 184 p. ; 25 cm. Includes bibliographical references (p. 151-179) and index. Clean, tight and strong binding with clean dust jacket. No highlighting, underlining or marginalia in text. VG/VG
This is a plain-English explanation of how we got into the current economic disaster that developed out of the economics and politics of the housing boom and bust. The “creative” financing of home mortgages and the even more “creative” marketing of financial securities based on American mortgages to countries around the world, are part of the story of how a financial house of cards was built up — and then suddenly collapsed.
The politics behind all this is another story full of strange twists. No punches are pulled when discussing politicians of either party, the financial dangers they created, or the distractions they created later to escape their own responsibility for what happened when the financial house of cards in the financial markets collapsed.
What to do, now that we are in the midst of an economic disaster, is yet another story — one whose ending we do not yet know, but one whose outlines and implications are explored to reveal some surprising and sobering lessons.