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!
Looks to me like an act of desperation. This is right out of the conservative playbook blaming the crisis on CRA and Fannie and Freddie, and "socialist" politicians elected through "voter fraud." But will it sell in Peoria?
ReplyDeleteActually, I just through Peoria. MIddle Americans are by and large very nice and well-meaning people, but they are pretty much clueless, since most of them have no sources of information other than what they get feed through the mainstream media and talk shows, which are predominantly right wing political and conservative religious. So maybe this farce will play well in Peoria.
The ironic thing is that if they do manage to lay the blame at the feet of government, the public guarantees that they depend on will be threatened in the process. It's hard to argue that government is the problem but that you need government to back you up.
"Middle Americans are by and large very nice and well-meaning people, but they are pretty much clueless"
ReplyDeleteProfound.
Tom,
ReplyDeleteYou've been prolific since your vacation. Must have a lot of pent up steam.
Matt Taibbi addresses Bloomberg's comments well...
http://www.rollingstone.com/politics/blogs/taibblog
Joe Conason refutes Mayor Bloomberg using Bloomberg News. I guess the major no longer has time to read his own stuff.
ReplyDeleteBloomberg vs. Occupy Wall Street
Chewitup, I've been reflecting on the developing trend, and it is pretty apparent to me that we are now in the second leg down of Great Depression II. Right now, it looks like the epicenter will be the implosion of the EZ and possibly even of the EU, too, as a consequence. The only alternative there to preserve the dysfunctional monetary union is "soft fascism." Most of the stuff I am putting up newswise relates to that.
ReplyDeleteI am also concerned about misperceptions about economics and finance. These run broad and deep and it is not going to be possible to sell a solution that will work to the public given the present level of misunderstanding due to pervasive propaganda and abject ignorance. This is a huge hurdle to overcome.
These are things I'll be focusing on in the immediate future as we enter parlous times.
Is it possible that elite capitalists (like the Koch bros.) see this as their time? The perfect alignment of crisis and political power to permanently alter the game board? Reduce labor costs, weaken already weak and ineffectual regulation, and essentially steal, through privatization at fire sales, public assets. All while embedding this into the culture of global capitalism.
ReplyDeleteUnfortunately Ritholtz hasn't given MMT the time of day and has outright dismissed it as insanity. Perhaps one day... He'd be a big win for MMT. But I think he is too concerned about reputation and associating himself with name brands.
ReplyDeleteAnon:
ReplyDeleteRitholtz is a friend of mine and I have spoken to him about it numerous times. Warren Mosler even met with him. Unfortunately, as you say, he is not biting.