Financial Report Reflects Ideology More Than Facts

David C. John / January 27, 2011

The release of the final report(s) of the Financial Crisis Inquiry Commission (FCIC) brings to mind the story of several blind men trying to describe an elephant. One felt the legs and decided an elephant was like a forest, while another felt the trunk and decided that elephants are like snakes.

Sadly, the FCIC went the same way by releasing three different reports, each of which reflects a certain view of the 2008 financial collapse. The majority report lists many causes of the crash but lays most of the blame on deregulation, greed, and poor judgment by financial institutions, mortgage-related banks, and credit-rating agencies. This mainly ideological view appears to be more a defense of the Dodd–Frank legislation than anything else. (more…)