The Cause of the Financial Crisis (Obama, money, state, world)

[Recovering Democrat]

FINALLY, an analysis of what CAUSED the financial crisis.

http://www.aei.org/docLib/Wallisondissent.pdf

You won't find it on Net-Flix or hear about it on the nightly news - it's way too boring. But if you care about the financial health of your community, state and country at least read the Introduction.

[txgolfer130]

An outlier who's target focus is not remotely close to the majority report is probably not the most reliable source. However, I bet it's a great "reinforcement" for the one's who want to continue to go down the wrong path.

[Recovering Democrat]

Columbus was an outlier who asserted the earth is round.
Gallileo was an outlier who asserted the sun is the center of our solar system.
Newton was an outlier who asserted gravity was real.
Pasture was an outlier who asserted bacteria caused disease.
Gates was an outlier who asserted personal computers would become common place.

Outliers should not be dismissed simply because they're outliers.

[saganista]

Peter Wallison's resumé can be summed up in one word -- whackjob. There was no reason in the world for prime lending terms to have been at 1950's levels and no reason why subprime markets should not have been served. The problem was not the people to whom money was being lent, but the crooked means by which that money was being lent and then securitized into secondary markets.

[saganista]

Originally Posted by Recovering Democrat

Outliers should not be dismissed simply because they're outliers.

Even less so should they be lauded for that reason alone.

There are various carefully done analyses of the evolution of the credit crisis. Wallison's is not at all one of them.

[Recovering Democrat]

Wallison isn't just another talking head. He's 1 of 9 appointees to the Financial Crissis Inquiry Commission established by President Obama in 2009. The FCIC - and only the FCIC - was charged with investigating and reporting on the causes of the crisis. His report represents the minority view of 4 of the 9 Commissioners.

We may disagree with their conclusions, but it would be irresponsible to ignore the report and dismiss the authors as outliers.