Ritholtz is a very smart and widely read blogger. His piece in the Washington Post talks about how a new narrative is being created that makes the perpetrators of the housing crash and ultimately, the Great Recession (the banks, Wall Street), look like the victims instead.
|One group has been especially vocal about shaping a new narrative of the credit crisis and economic collapse: those whose bad judgment and failed philosophy helped cause the crisis.|
Rather than admit the error of their ways — Repent! — these people are engaged in an active campaign to rewrite history.
A Big Lie is so colossal that no one would believe that someone could have the impudence to distort the truth so infamously. There are many examples: Claims that Earth is not warming, or that evolution is not the best thesis we have for how humans developed. Those opposed to stimulus spending have gone so far as to claim that the infrastructure of the United States is just fine, Grade A (not D, as the we discussed last month), and needs little repair.
Wall Street has its own version: Its Big Lie is that banks and investment houses are merely victims of the crash. You see, the entire boom and bust was caused by misguided government policies. It was not irresponsible lending or derivative or excess leverage or misguided compensation packages, but rather long-standing housing policies that were at fault.
Propaganda that even Goebbels would be proud of!