

The pendulum swings - moog
http://www.economist.com/books/displaystory.cfm?story_id=10797600

======
Prrometheus
Sudden reactions to unusual events make bad policy.

That being said, an asset whose price is growing at 20%/year is safe to lend
against. If there was no asset bubble, there would be no credit crisis. It’s
hard to think of which institutions are appropriate to defend against excesses
in an asset price bubble without harming the credit market in more normal
environments.

------
patrickg-zill
Factors contributing to subprime crisis: Deval Patrick as DOJ lawyer suing
over alleged "redlining"; repeal of Glass-Steagall Act in 1999; large number
of illegal aliens driving up demand for housing. Add to this a huge amount of
restrictions on when and where new houses can be built.

