Let Them Eat Credit...

A very nice article entitled "Let The Eat Credit" by Raghuram Rajan of Chicago in the New Republic.  Krugman provides a counter to Rajan's assertion that it was predominately government policy mistakes that encouraged the housing bubble...Krugman blames loan originators in the private sector.  I say both are right.  Krugman's data may support the view that private sector housing market players were more at fault...but I do not think that this absolves the government from engaging in the type of short-sighted policies to address income inequality(i.e., credit, credit, and more credit) that Rajan writes about in his article.