Lots of garbage, but notice the MMT parts starting to surface.

The Untold Story Of How Clinton’s Budget Destroyed The American Economy

28 Responses

    1. @mike norman,
      Indeed. Reprinting right-wing flapdoodle about how Fannie and Freddie and the Community Reinvestment Act caused the crash, without explicitly debunking those silly claims, is not the way to get across the MMT viewpoint on appropriate fiscal policy.

      Inadvertently or otherwise, the article effectively winds up whitewashing a vast number of dirty hands: the orgy of financial fraud committed by Wall Street elites, the wholesale abandonment of regulatory and supervisory responsibility by George W. Bush’s administration, and the blinkered complacency of Alan Greenspan and Ben Bernanke at the Fed.

    2. Well obviously Fannie and Freddie weren’t the cause of the crisis, but citing them could actually help draw right-leaning people into the modern money movement. Afterall, if it came off as a left-wing Krugman style piece, they would just ignore it.

    3. @mike norman,
      Weren’t mortgage backed securities at the root of the 08 meltdown? It seems to me that multiple administrations (not a single president) was responsible, in the sense that they were pressuring banks to make loans to unqualified lenders, while simultaneously giving up oversight.

      1. they melted as far down as they did largely because sales collapsed/unemployment spiked.
        also a total failure of govt, in this case failure to support agg demand

      2. @WARREN MOSLER,
        So then lending to unqualified parties is all right except that the deficit wasn’t large enough toe supp agg demand. I can accept that. Of course the parties most responsible for pushing the loans were also the ones pushing for a reduction in the deficit circa 2006.

      3. by and large it was stockholders of the institutions in question who took the losses.
        and when the financial crisis caused sales to drop a full payroll tax holiday would have
        allowed people working for a living to be able to buy the goods and services of their choice
        and make their mortgage payments if they wanted to. Business would have winners and losers based
        on consumer choice.

        what’s wrong with that?

      4. @WARREN MOSLER, You don’t waste words. Your comments are clear, short and informative. You’d own twitter. Which is less trivial than it sounds.

        Twitter isn’t a replacement for other channels of communication but a legitimate add-on leveraged successfully by a lot of people to broaden the reach of their communications and to engage with each other in less formal, neutral territory.

        Just sayin’…

      5. @WARREN MOSLER,
        Nothing wrong with that at all. Just imagine if that’s how it had played out.
        But as an aside, do you see no downside to lending money to those unqualified? I’ve always seen that as mostly a disservice to the borrower.

      6. @WARREN MOSLER,

        @Vincent:

        “isn’t that bad for the borrower?”

        You’re conflating other bad decisions the borrower makes with the original decision to borrow, e.g. blowing their windfall on cars and vacations.

        True predatory lending is where the lender embeds hidden costs in the loan contract which the borrower is too unsophisticated to detect or understand. I think that was very rare during the housing bubble, and to the extent it happened, it is pretty easy for borrowers to have those predatory provisions modified or rescinded.

        Lending people more money than they need or deserve is merely giving them an option. What they do with it is up to them.

  1. Senator Ron Paul has introduced the Federal Reserve Transparency Act of 2012 ( HR459)

    If you MMT people believe what you are promoting then you would all back Ron Paul’s audit The Fed act so Americans can see exactly how the Federal Reserve works.

    Of course, Mosler will be proven results but the conclusion will be different.

  2. Remember Fannie and Freddie were for-profit publicly traded companies. How much of their influence was due to making profits?

      1. @WARREN MOSLER,

        I disagree, most of your comments, even cryptic, would make excellent tweets. but that’s just me.

        Used cleverly Tweeter is a great platform to spread ideas

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