As Steven Malanga notes (and yes, he's from a hard-right think tank), contrary to myths of both Democrats about poor first-time homeowners AND Republican talking points blaming Fannie, Freddie and the Community reinvestment act, it was, in essence, speculative homebuyers who caused the problem.
Malanga focuses on "flippers." He could have included second-home "investment" buyers, and "apartment renter"-buyers, who treated 2/28s and similar mortgages like leases, but, flippers were certainly the primary portion of the speculative homebuyers.
Read the full story. Even the Manhattan Institute can find an acorn on occasion.
A skeptical leftist's, or post-capitalist's, or eco-socialist's blog, including skepticism about leftism (and related things under other labels), but even more about other issues of politics. Free of duopoly and minor party ties. Also, a skeptical look at Gnu Atheism, religion, social sciences, more.
Note: Labels can help describe people but should never be used to pin them to an anthill.
As seen at Washington Babylon and other fine establishments
November 30, 2008
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