From Paul Krugman's column today in the New York Times:
Between 2002 and 2007, false beliefs in the private sector — the belief that home prices only go up, that financial innovation had made risk go away, that a triple-A rating really meant that an investment was safe — led to an epidemic of bad lending. Meanwhile, false beliefs in the political arena — the belief of Alan Greenspan and his friends in the Bush administration that the market is always right and regulation always a bad thing — led Washington to ignore the warning signs.
The result of all that bad lending was an unholy financial mess that will cause trillions of dollars in losses.
Rep. Jeff Flake not only stood idly by and allowed this mess to happen, he encouraged it.
What does he have to say about the magic of the free market today?
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