It was a remarkable failure of the economics profession and economics reporters not to see the housing bubble before it burst. It is truly incredible that so many can't see it even after the fact.
Yes, it is strange but true. The WSJ has a discussion of the future of Fannie Mae and Freddie Mac and there is no mention whatsoever of their failure to see the housing bubble in discussing the causes of their collapse. If anyone at these institutions had been smarter than Barney Frank's dining room table, they would not have been buying and guaranteeing mortgages used to purchase homes at bubble-inflated prices. This simple act is what doomed these companies. But the WSJ and its "experts" can't even discuss it.
I’m writing to you today with a sense of urgency that I haven’t felt since I began my journalism career. As executive editor of The American Prospect, I’ve witnessed firsthand how independent journalism serves as a crucial bulwark against the erosion of our democratic institutions. Today, that role is more vital than ever. Can you step up today and show your support?
The winds of authoritarianism are blowing stronger. We’re seeing alarming signs of a coordinated effort to silence critical voices and undermine the very foundations that support progressive causes. As Bob Kuttner presciently wrote in our August 2024 issue, a weaponized IRS could attack the very foundations of the progressive movement. We need readers to step up and help us dig in for the long haul.
We’re falling behind in our spring fundraising campaign, and with so much at stake we can’t afford to come up short. If you value fearless, independent journalism that holds the powerful accountable and defends democracy, now is the time to step up. The American Prospect depends on reader support to stay in the fight. Pitch in today and help us close the gap. Please consider making a donation today.
–David Dayen, Executive Editor
Copyright 2025 | The American Prospect, Inc. | All Rights Reserved