Bill Black — Two Sentences that Explain the Crisis and How Easy it Was to Avoid

Everyone should read and understand the implications of these two sentences from the 2011 report of the Financial Crisis Inquiry Commission (FCIC).

“From 2000 to 2007, [appraisers] ultimately delivered to Washington officials a petition; signed by 11,000 appraisers…it charged that lenders were pressuring appraisers to place artificially high prices on properties. According to the petition, lenders were ‘blacklisting honest appraisers’ and instead assigning business only to appraisers who would hit the desired price targets” (FCIC 2011: 18).

Those two sentences tell us more about the crisis’ cause, and how easy it was to prevent, than all the books published about the crisis – combined. Here are ten key implications....

New Economic Perspectives
Two Sentences that Explain the Crisis and How Easy it Was to Avoid
William K Black | Associate Professor of Economics and Law at the University of Missouri – Kansas City

Forget the economic explanations for the crisis. Study Bill Black if you want to know what really happened. Of course, this is entirely consistent with Hyman Minsky's financial instability hypothesis, but Bill documents how it actually went down this Ponzi cycle.

And there was no Pecora commission and none is planned. Instead the AG has promised global finance that no one will be prosecuted.

Another neoliberal dream. No accountability.