Re: [Pen-l] How the Left Wing Created the Credit Crisis. Yes, Indeed!

["Jim Devine" <jdevine03@xxxxxxxxx>]

Michael Perelman  wrote:
> James Grant is a knowledgeable student of the credit system, but today he
> goes off the rails, blaming the left wing for the credit crisis.  Here is
> the most striking passage:
>
> "By and by, the lefties carried the day. They got their
> government-controlled money (the Federal Reserve opened for business in
> 1914), and their government-directed credit (Fannie Mae and the Federal
> Home Loan Banks were creatures of Great Depression No. 2; Freddie Mac came
> along in 1970). In 1971, they got their pure paper dollar. So today, the
> Fed can print all the dollars it deems expedient and the unwell federal
> mortgage giants, Fannie Mae and Freddie Mac, combine for $1.5 trillion in
> on-balance sheet mortgage assets and dominate the business of mortgage
> origination (in the fourth quarter of last year, private lenders garnered
> all of a 19% market share)."

if you define "lefty" in a politically expedient way (e.g., statism)
then this story almost makes sense. but he seems to use the term to
mean "anyone who advocates stuff I don't like."
-- 
Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own
way and let people talk.) -- Karl, paraphrasing Dante.
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