Paul Krugman is making my head explode
In a piece about moderate Dem candidates falling victim to what Krugman calls zombie economic theories, he says Republicans blamed the 2008 Great Recession field by sub prime loans on bankers giving unsound loans to People of Color. Krugman says the Republicans didn't outright say this bunk, but implied it. Has anyone here ever heard this accusation before, or is the Nobel Laureate making up a new narrative?
I paid close attention to the Great Recession and never heard this slander. I heard people bought more house than they could afford, banks did not require proper documentation of income and that the bad practices affected all ends of the market, save the highest. And yes, the poorest were responsible for more sub prime borrowing than the middle or the top.
From Krugman's column:
But right-wingers refused to accept the obvious. Instead, they pushed an alternative narrative in which liberals somehow caused the crisis by forcing poor innocent bankers to lend money to people of color (they weren’t usually that explicit, but that was the clear message).