No, Democrats: Income Inequality Didn't Cause the Financial Crisis

[MindMover]

There's something intuitively compelling about the idea that America's growing income inequality helped fuel the 2008 financial crisis. The narrative, which got an official stamp from Congress' Democrat-led Joint Economic Committee back in 2010, goes something like this: As middle class wages stagnated, families borrowed more to prop up their standard of living. Banks, along with Fannie Mae and Freddie Mac, happily provided them with unaffordable mortgages, which they then skillfully repackaged and sold as securities. Eventually, the whole house of cards collapsed, plunging us into the Great Recession.

The story is downright elegant -- a sort of grand, unified theory of our present economic woes. But according to a new study, it's plain wrong.

http://www.theatlantic.com/business/archive/2012/03/no-democrats-income-inequality-didnt-cause-the-financial-crisis/254057/

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This story has got to stop being propagated by all the talking heads......It was all those people who borrowed money to buy a house that they could not afford, BS.......