Sowell Blames Frank, Bush, and Greenspan for Housing Bust
The Hoover Institution - Hoover Institution
Thomas Sowell analyzes the recent housing boom and bust, beginning with the underlying economic causes that artificially inflated housing costs in certain markets. He points the finger directly at political decisions in Washington -- particularly involving Fannie Mae and Freddie Mac -- that enabled and promoted the financing of an unsustainable housing bubble in which the collapse of prices in a few inflated markets rapidly evolved into a national crisis.Sowell challenges the accepted wisdom of modeling a recovery based on the New Deal, which he asserts did little to help -- and perhaps even extended -- The Great Depression. Finally, he disputes the value of the recent stimulus package and argues against Obama's health-care and energy initiatives.