Latest Pajamas Media Column (‘Very Different Economic Times in Red vs. Blue States’) Is Up; Some Follow-ups, Including ‘Barney’s Rubble’
I will post it at BizzyBlog Saturday morning (link won’t work until then) under the title “One State, Two State, Red State, Blue State.”
Because of weather, power, Internet access, and computer complications (all not completely resolved until 9 PM last night, thanks to a partially botched repair job), I wasn’t able to give Pajamas a heads-up on the topic as I normally do. I’m grateful for their acceptance of the column in spite of that.
- Here is the subheadline — “If there is to be a recession, it will be blue-state thinking that brought it on.”
- Final paragraph — “So if there is indeed a recession taking place, blame it on the blue states and blue regions, with their high-tax, high-regulation, high-giveaway environments. The lower-tax, more economically free red states and the red regions within otherwise blue states are certainly not the culprits.”
- Nickname of the week (courtesy of the Wall Street Journal) — Thanks to Barney Frank (D-MA), who defended Freddie Mac and Fannie Mae (known around here as Fredron and Fanron) to the bitter end, and STILL wants them to live on in their bloated dysfunctional forms, the two entities are now “Barney’s Rubble.”
Related: Ed at Hot Air had a great post Tuesday explaining how Fan and Fred, courtesy of the Community Reinvestment Act (CRA; not the Community Redevelopment Act, as named there), created the housing mess, and brought themselves (and others) down. Money grafs –
It was the Bush administration that wanted to rein in the madness in the credit markets, and the Democrats who wanted to extend the Clinton policies that created the crisis we have now. After the fit hit the shan, as Michelle says, these same Democrats want to shift blame back to the administration that wanted to increase oversight and curtail risk in lending practices while reducing patronage at the giant GSEs.
The Bush administration isn’t blameless in letting this get out of hand, but clearly the origins of the disaster and the efforts to keep bad policies in place fall on the Democrats in this case.
As yours truly noted noted last week, and over 18 months ago (see end of post), it was Fan and Fred that lowered credit-score approval thresholds to absurd levels (that post also has the full list of blame-sharers). The two government-sponsored enterprises’ credit laxity, more than any other single factor, has created the awful foreclosure situation in Northeast Ohio and other locales. Team Obama and others lefties who loved Fan, Fred, and the CRA are wrongly trying to pin the primary blame on anyone but their own party and their Fanron/Fredron executive hacks.