We are still at the early stages of the collapse of the housing bubble, but it�s not too early to start pointing fingers. This isn�t a question of vengeance, the issue is accountability. If the dishwasher breaks the dishes, she gets fired. If the custodian doesn�t clean the toilet, he gets fired. Economists think it�s very important that people who don�t do their job adequately face serious sanctions, including job loss. This provides the necessary incentive for people to do their job effectively, and sustains the economy�s productivity. This is why it is important to identify the people who did not do their job, and therefore contributed to the growth of a dangerous housing bubble. A very big finger has to be pointed at all the reporters who cover the housing market. In news stories on the housing market, how many times did they present the views of the economists from Fannie Mae, Freddie Mac, the National Association of Realtors, the Mortgage Bankers Association, and the Homebuilders Association? The answer is far too many. Of course, these are all people with a very clear stake in promoting the housing market. It is fine to present their views, but these views should be presented to readers/listeners in a way that makes it clear that they have a material interest in this issue. (Imagine that the only people commenting on the problem facing GM and Ford worked for the United Auto Workers.) Reporters should also be certain to present the views of independent experts � views that were seriously lacking in much of the coverage of the housing market as the bubble grew to unprecedented heights. Business reporters are fortunate that they are not held to the same standards of accountability as dishwashers and custodians.
--Dean Baker
