Obama Swats The GOP!

[we vs us]

All of this is true, but the tragedy is that no one knows any of this.  Most folks think it's greedy people who borrowed too much that caused this crash.  Maybe greedy poor people who were pushed into it by the guv.  They draw an absolutely straight line between the guy down the street's foreclosure and our teetering economy.  It's this guy's fault that banks aren't solvent. 

So what's going to happen -- and it's already happening -- is that the public outrage that will drive reform is pushing in the exact opposite direction. Obama and crew are fighting against it mildly, but seem hesitant to try to wrench things back the other direction.  Or to try any sort of comprehensive explanation. 

It's frustrating to watch this unfold because so many false narratives have already taken hold, and there's no one pushing back on them.  It's just layer after layer of demagoguery.

[nathanm]

It's frustrating to watch this unfold because so many false narratives have already taken hold, and there's no one pushing back on them.  It's just layer after layer of demagoguery.

Don't expect it to get better, what with paid mouthpieces becoming even more entrenched in Congress.

One of the few good things the Democratic majority has brought us is the continued existence of Fannie and Freddie. There's a good deal of support on the right for shutting them down entirely. That would be great for the big banks, though, given the bigger interest rates they could charge.

The funny thing is that it was largely caused by greedy people who borrowed too much, just not the greedy people who borrowed too much money to buy houses and HDTVs and what have you. That's why we saw the special dispensation for the investment banks to convert to commercial banks so they could get money mainlined from the Fed to replace the funding they could no longer get on the open market.