Saturday, July 25, 2015

Dear God: Powerline Still Believes in the "CRA Caused the Great Recession" Theory.

Paul Mirengoff over at Powerline still believes the CRA caused the Great Recession.  Thankfully, Barry Ritholtz did the heavy lifting on this "theory" some time ago, thoroughly debunking it.  Here's the key piece of data: the housing bubble was global.  Take a look at this chart from the article:

So, either a ton of other countries had the CRA, or there were other causes. 

Of course, economic facts and data haven't meant anything to the PL boys in decades, so this won't change their minds.  But, it is good to know the PL boys have maintained their 100% error rate on economic matters streak.