From a blog I posted at the Anchorage Daily News:
http://www.adn.com/front/story/995392.html
This whole series is a liberal whitewash of the truth of the lending and housing bubble. Simply stated, it was generated by a politically driven agenda providing excessive credit to ill-prepared home-buyers, compounded by oversight agencies not doing their job. Investors and others whose job it is to manage risk, have been using forms of swaps for decades- called shorts, options, and by other names- it doesn’t imply they’re “betting against” anything other than negative returns. It’s their job to make money, not lose it, unlike the government. Greed involved? As much on the part of a greedy homebuyers and banks as anyone.
Read http://www.forbes.com/2009/02/13/housing-bubble-subprime-opinions-contributors_0216_peter_wallison_edward_pinto.html or SEC’s own report: http://www.sec.gov/news/studies/2008/craexamination070808.pdf.
Government regulators failing to do their job due to political pressure shouldn’t be reason to blame private investors who know a bubble when they see one.
Arctic Vision 