Hidden in Plain Sight: What Really Caused the World’s Worst Financial Crisis—and Why It Could Happen Again

By | June 14, 2017
Hidden in Plain Sight: What Really Caused the World's Worst Financial Crisis—and Why It Could Happen Again Author Peter J. Wallison
ISBN-10 1594038651
ISBN-13 9781594038655
Year 2016-03-29
Pages 432
Language English
Publisher Encounter Books
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The 2008 financial crisislike the Great Depressionwas a world historical event What caused it will be debated for years if not generations The conventional narrative is that the financial crisis was caused by Wall Street greed and insufficient regulation of the financial system That narrative produced the Dodd Frank Act the mostcomprehensive financial system regulation since the New Deal There is evidence however that the Dodd Frank Act has slowed the recovery from the recession If insufficient regulation caused the financial crisis then the Dodd Frank Act will never be modified or repealed proponents will argue that doing so will cause another crisis A competing narrative about what caused the financial crisis has received little attention This view which is accepted by almost all Republicans in Congress and most conservatives contends that the crisis was caused by government housing policies This book extensively documents this view For example it shows that in June 2008 before the crisis 58 percent of all US mortgages were subprime or other low quality mortgages Of these 76 percent were on the books of government agencies such as Fannie Mae and Freddie Mac When these mortgages defaulted in 2007 and 2008 they drove down housing prices and weakened banks and other mortgage holders causing the crisis After this book is published no one will be able to claim that the financial crisis was caused by insufficient regulation or defend Dodd Frank without coming to terms with the data this book contains

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