What Caused The Global Financial Crisis according to Paul Sperry

The Global Financial Crisis according to Paul Sperry

Paul Sperry is a Washington-based investigative journalist, Hoover Institution media fellow, and is the author of The Great American Bank Robbery: The Unauthorized Report About What Really Caused the Great Recession. See also Smoking-Gun Document Ties Policy To Housing Crisis in Investors Business Daily (10/31/2011). Sperry is also raising money to produce Subprime 2.0: A Film that Exposes the True Causes of the Financial Crisis & Warns the Culprits Are Doubling Down.

1. Which FCIC View best represents the causes of the Financial Crisis?

Dissenting Views By Wallison

2. Which narrative presented by Douglas Elliott and Martin Baily of the Brookings Institute in Telling the Narrative of the Financial Crisis: Not Just a Housing Bubble best represents the causes of the Financial Crisis?

It was the fault of the government.

3. The Global Financial Crisis is ongoing and I project the Global Financial Crisis will end in the year
2013 or beyond.

4. What were the primary causes of the Global Financial Crisis?
Readers Digest version: Washington through various regulatory and enforcement mechanisms socialized the mortgage industry and gutted traditional mortgage underwriting standards to help more lower-income minorities buy homes; and then, when those riskier loans failed, the politicians and regulators blamed Wall Street and the private sector, which merely responded to the perverse incentives mandated by government.

5. What still should change as a result of the crisis?
Abolish the affordable-housing charter regulating Fannie Mae and Freddie Mac and by extension the primary mortgage market (i.e., repeal the Federal Housing Enterprise Financial Safety and Soundness Act of 1992); and repeal the 1995 revisions to the Community Reinvestment Act. Also, bar Justice Department prosecution of banks and mortgage lenders for lending discrimination under "disparate impact" and "secondary impact" theory. Finally, repeal the provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act authorizing the creation of the Consumer Financial Protection Bureau.

Compiled by Gary Karz, CFA
Host of InvestorHome

Global Financial Crisis Survey

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