In response to:

Defending Cato from the Predictably Inaccurate Ramblings of Paul Krugman

rauljg69 Wrote: Feb 18, 2013 11:46 AM
http://www.cato.org/sites/cato.org/files/serials/files/cato-handbook-policymakers/2009/9/hb111-22.pdf So CATO oversimplifies the whole thing and states that "state and local land-use restrictions—not loose credit, speculators, or Federal Reserve policies— are the real source of the recent housing bubble" So yeah the billions of dollars being made by securitizing subprime loans was just a small by product but local land zoning and land restrictions is the major culprit.
FletchforFreedom Wrote: Feb 18, 2013 4:07 PM
You really should learn to read (I know; you're a liberal so learning is painful). CATO's point is that the DISPARITY in the regional impact of the bubble cannot be due to things that have a homogenous national impact. That the Fed created the underlying NATIONWIDE bubble (and the subsequent symptoms in credit markets) is not in dispute.

Writing for the New York Times, Paul Krugman has a new column promoting more government spending and additional government regulation. That’s a dog-bites-man revelation and hardly noteworthy, of course, but in this case he takes a swipe at the Cato Institute.

The financial crisis of 2008 and its painful aftermath…were a huge slap in the face for free-market fundamentalists. …analysts at right-wing think tanks like…the Cato Institute…insisted that deregulated financial markets were doing just fine, and dismissed warnings about a housing bubble as liberal whining. Then the nonexistent bubble burst, and the financial system proved dangerously fragile;...