Barry Ritholtz at the Washington Post explodes the big lie about why we're in a recession:
A Big Lie is so colossal that no one would believe that someone could have the impudence to distort the truth so infamously. There are many examples: Claims that Earth is not warming, or that evolution is not the best thesis we have for how humans developed. Those opposed to stimulus spending have gone so far as to claim that the infrastructure of the United States is just fine, Grade A (not D, as the we discussed last month), and needs little repair.
Wall Street has its own version: Its Big Lie is that banks and investment houses are merely victims of the crash.
[New York Mayor Michael] Bloomberg was partially correct [when he blamed the crisis on Congress]: Congress did radically deregulate the financial sector, doing away with many of the protections that had worked for decades. Congress allowed Wall Street to self-regulate, and the Fed the turned a blind eye to bank abuses.
The previous Big Lie — the discredited belief that free markets require no adult supervision — is the reason people have created a new false narrative.
The entire column is worth reading.