tag:blogger.com,1999:blog-475428418585674531.post9095843386276708108..comments2023-11-02T06:28:40.830-04:00Comments on Annapolis Politics: Financial Crisis: The Government Failed In Many PlacesBrian Gillhttp://www.blogger.com/profile/04048749623060731637noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-475428418585674531.post-84146519820580417922008-11-09T08:41:00.000-05:002008-11-09T08:41:00.000-05:00Brian:I write a weekly column for the Capital that...Brian:<BR/><BR/>I write a weekly column for the Capital that's in the Sunday Haven's section. This week, I take a look at the housing market, and how we got to this credit crunch.<BR/><BR/>My conclusions are similar to yours. By yielding to political, rather than economic pressures, Fannie and Freddie, as GSE's, are primarily responsible for the credit crisis.<BR/><BR/>The current O'Bama mantra that we got here, because of top down economics is simply wrong. We got here because, Congress failed to require that Fannie and Freddie adhere to sound economic principles.<BR/><BR/>Blaming it on top down economics is simply another "political" fantasy designed to give rationale for the bottom up theories of O'Bama.<BR/><BR/>It'll be interesting to see if his bottom up theories work. I have my doubts, in that bottom up measures are a mile wide and an inch deep. As such, they do not magnify the stimulus through the power of leverage, with a focus on growth and job creation. Bottom up theories are like fighting a fire with a gentle rainfall, rather than turning the force of a hose on the source of the blaze. I fear that O'Bama's stimulus will simply evaporate when it hits the heat of this economic crisis.<BR/><BR/>Bob McWilliamsAnonymousnoreply@blogger.com