Yet economist William A. Barnett resists the urge to wag a scolding finger at greedy bankers, feckless homebuyers or even Alan Greenspan, whom he calls a salesman, not a monetary maestro.
“While there is plenty of blame to spread around, something deeper has happened and needs to be understood to recognize the real source” of the crisis, says Barnett, a former Federal Reserve Board staffer.
That “something” was shoddy monetary data and how they fooled some of the smartest people on Wall Street, he argues in “Getting It Wrong,” an important contribution to our understanding of the $2 trillion meltdown.
The real problem is that the government, any government, should be out of the housing business and let the banking system work as it should.
Eventually markets have a knack to catch up with bad idea. And this one, like the Euro, have proven to be bad and catastrophic ideas for many people.
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