Thomas Sowell reminds us of the large role government pressure played in the explosion of the subprimes. He also reminds us of the many close connections between Fannie Mae and the Democrats, not to mention how much Fannie has contributed to Obama in just a few years and the role the mismanager Franklin Raines has played in advising his campaign. The narrative of the unregulated free market being the cause of what ails us doesn’t hold up that well under close examination. McCain has to understand and use this stuff to restore morale and credibility to his campaign. He shouldn’t exaggerate it, but just say what’s straight-talk true. He should also, of course, lay off the earmarks.
What Sowell says is basically confirmed by the long and meticulously researched article on Fannie Mae in the Sunday NYT. That article doesn’t mention the connections with Obama etc., but if you read it carefully it’s clear what really happened.