Who’s to Blame for the Housing Bubble?

WALL STREET JOURNAL, 11/16/2009 by James R. Hagerty - Many people argue about when the housing bust will end. ∴ But some seem at least as concerned about defining when the housing bubble began. ∴ Why should we care when it all began? It’s politics. If the housing bubble began during the Clinton administration, it can be blamed on the Democrats and their efforts to expand homeownership to people who, in some cases, may not have been quite ready for it. If it began under George W. Bush, then it can be imputed to the Republicans’ love of deregulation. ∴ Of course, as we all know, the causes of today’s mess are far more complicated than either of those hypotheses allow. But nuance rarely figures in the debates of our age. ∴ In the (perhaps vain) hope of gaining some calm perspective, let’s consult two people who are frequently quoted on housing and mortgage matters. Read the views of Edward Pinto, a mortgage-industry consultant and Tom Lawler, an independent economist...