Wall Street analyst Barry Ritholz, author of “Bailout Nation,” offers a pretty entertaining and damning assessment of the claim that the Community Reinvestment Act, Fannie Mae and Freddie Mac helped drive the housing collapse.
As he notes, people such as Kevin Hassett (co-author of the infamous “Dow 36,000: The New Strategy for Profiting From the Coming Rise in the Stock Market (1999) continue to peddle that line of nonsense, but offer no data to support it.
After pointing out that he has offered a $100,000 reward for proof of a major role played by Fannie, Freddie and the CRA — proof that has yet to be forthcoming — Ritholz concludes:
“Of course, folks like Hassett hate this factual history, as it conflicts with their goals and politics. Rather than produce evidence, they create story lines unsupported by facts. But Monkeys love a good narrative, and so they give that to them.
However, as an investor, I demand evidence, data and facts. The blame Fannie & Freddie crowd have managed to remain blissfully data free. They have steadfastly ignored all calls for proof.
Its way past the time to call out their intellectual dishonesty. If you cannot show any data, if you cannot prove what you are alleging with actual facts, you need to be called out for what it is you actually are: Proponents of a failed philosophy.”