Friday, September 19, 2008
The Best Take on the Subprime Crisis
Steve Sailer's piece in Taki's magazine is, I think, the best analysis of how we got here, and he's not an economist. When you think about something that gestated for 10 years, you get a better sense of how inevitable it was, because the people warning against this 10 years ago were all 'proven wrong' a long time ago. The key is that everyone wanted more home ownership, which we know is correlated with all sorts of good socioeconomic things: lower crime, more education, etc. But some people are not meant to be owners, that is, there is an equilibrium amount of home-owning, and it is less than 100%.