I TOLD YOU SO!

MONTHS ago, I blamed low Fed interest rates, Congressional legislation pushing housing, and the securitization of mortgages and the GSEs (Fannie and Freddie) for the turmoil. In other words, GOVERNMENT caused the problem in that it created an atmosphere that was ripe for poor underwriting.

Recently, Rep. Jeb Hensarling (R-TX), a member of the Congressional Oversight Panel, published his own, alternative views to a report by the COP on the causes of the housing bubble bust, the credit contraction, and the economic downturn. In his alternative views, Rep. hensarling blamed almost exactly the same factors for causing the downturn as I did. Needless to say, I feel fully vindicated.