Deregulation Wasn’t to Blame for Financial Crisis

Even the reliably-liberal BBC says that deregulation wasn’t the cause of the financial crisis.   Other liberal journalists like Washington Post columnist Sebastian Mallaby have made the same point.

The government-sponsored mortgage giants Fannie Mae and Freddie Mac played a big role in spawning the mortgage crisis.  Lawmakers like Barney Frank blocked crucial reforms that might have reined them in.  Now, Frank is trying to change the subject, claiming that critics of Fannie and Freddie are, you guessed it, racist.  (Fannie Mae also engaged in fraud and political bullying).