Republicans see the collapse of the mortgage market as a potential catastrophe that requires emergency measures... but an aberration caused by government intrusion into the market, not an indictment of capitalism and free markets.(emphasis in original)
Democrats see it as proof positive that capitalism has been proven to be a fad that will soon pass away, like pet rocks... and a golden opportunity to reintroduce failed liberal fascist economic policies straight out of the platforms of Woodrow Wilson, Franklin Roosevelt, and Jimmy Carter.
This is pretty much the same line I have repeated from day one: This is not a market failure. This is a cautionary tale for the central-planning-inclined, government-market-interventionists, public-policy-do-gooders; this is a lesson in unintended consequences. As though we needed another one after the ethanol/starvation debacle. Of course, this one has been stewing for a little bit longer.
Sure, giving loans to more minorities and poor people sounds good (and gets lots of Democrats elected), but when you give mortgages to people who can't afford them, well, economic crises happen.
If you have tips, questions, comments or suggestions, email me at firstname.lastname@example.org.