Posted by: Michael Mandel on October 01
Paulson and Bernanke misdiagnosised the root of the current crisis. They identified the problem as the housing market, and nationalized Fannie and Freddie. But all they accomplished was establishing housing as the preferred, government-guaranteed choice for investment. So now homebuyers can still get mortgages, but businesses are having trouble getting credit.
I would rather it be the other way around.
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