Why was the S&L Crisis not a Systemic Economic Crisis?

We promote our failures and give them presidential medals. The high priests of theoclassical economics and their law and economics acolytes will always fail as regulators. They are trained to create and worship intensely criminogenic environments.

Spotlight on the Bush Council of Economic Advisors

The CEA did not warn of any credit risk at Fannie and Freddie. Indeed, it urged them to make more loans to weaker credit risks as long as they securitized the loans. Securitization would not have reduced Fannie and Freddie’s credit risk.

Analysis: How Wallison is Blind to Accounting Control Fraud

Wallison is incorrect in claiming that there has been no significant financial deregulation in the last 30 years. There has been very little desirable financial deregulation in the last 30 years, but there has been extensive, destructive deregulation. Deregulation played a major role in the S&L debacle and the current crisis.