Johan Norberg is in an interesting overview of the “Origins of the Financial Crisis” at Reason.TV. Bottom line – everyone is guilty. This mess was caused by the combined idealistic zeal of both the political right and the left encouraging home ownership combined with increasing micromanagement of economic policy by both parties.
Perhaps of most interest is Norberg’s claim that while under Clinton financial regulations decreased, government control and regulation of the financial sector increased dramatically under the Bush administration. He claims the country was encumbered with 210 pages of new regulations per day under the Bush administration, the fastest pace of regulatory growth in history.
Most refreshing was his non-partisan take on the whole mess – both major parties are equally responsible with their ideological intrusions in the market.