David Byrne, yes that David Byrne, one of my favorite contemporary musicians, explains the mortgage credit crisis and how the housing bubble might explain why working people voted against their interests in 2004 and helped elect GW Bush,
Meanwhile the recipients — the workingmen and women who are barely eking by — suddenly have loan offers thrown at them by the truckload. They feel richer, more flush; things are going well it seems, and their situations improving. It’s not so hard to pay the bills. They worry less and sleep more. A sense of blissfully ignorant well-being pervades the land. The working class and the under- and unemployed assume that the Republicans are somewhat responsible for this new (virtual) wealth — and maybe they were. It would follow that Mr. Joe Average might vote for the administration seemingly responsible for his new sense of well-being. Now, the bills are coming due — the housing market stalled, as I understand it, triggering the collapse of the whole house of cards.
Although Byrne's analysis of the sources of the bubble isn't half bad, the really good stuff is at Calculated Risk if you have a taste for true insider mortgage industry wonkishness in all its glory. But having seen Bryne's blog entry, I couldn't, just couldn't, resist the chance to use that headline.