Republicans across the political world have struggled to comprehend the causes of the financial crisis since it began roiling the American economy nearly five years ago. Former Pennsylvania Sen. Rick Santorum (R), now one of the GOP’s two leading presidential candidates, hasn’t been immune, going all-in on the notion that government policy, government-sponsored housing programs, and government regulation were the main drivers of the crisis, a claim that has been repeatedly debunked.
On the campaign trail in Colorado this week, however, Santorum offered an even further out there explanation for the crisis. According to the Colorado Independent, Santorum told one crowd that gasoline and oil prices rose so sharply in the build-up to the collapse that they caused Americans to default on their mortgages in droves, thereby triggering the housing crisis that is still acting as a drag on the nation’s economy:
Stressing the importance for the country to provide cheap energy to its citizens, Santorum blamed the recession not on sub-prime mortgages or the derivatives market but on spiking fuel prices.
“We went into a recession in 2008. People forget why. They thought it was a housing bubble. The housing bubble was caused because of a dramatic spike in energy prices that caused the housing bubble to burst,” Santorum told the audience. “People had to pay so much money to air condition and heat their homes or pay for gasoline that they couldn’t pay their mortgage.”
The theory that rising oil prices blew up the housing market exists only in Santorum’s mind. “All The Devils Are Here,” an inside account of the crisis written by Fortune editor and columnist Bethany McLean and New York Times columnist Joe Nocera, doesn’t mention oil or gas prices a single time. New York Times financial reporter Aaron Sorkin’s “Too Big To Fail,” another inside account, never points to oil prices as a factor in the crisis. And the official government report about the crisis, the Financial Crisis Inquiry Commission Report, mentions oil prices multiple times as a symptom of the declining economy but never blames rising prices for the collapse of the housing market.
In reality, the primary cause of the financial crisis is quite clear. Mortgage lenders and large banks, driven by an insatiable thirst for profits, divvied up subprime mortgages and junk loans into mortgage backed securities, credit default options, and various forms of derivatives, then sold them around the world, creating a housing bubble that burst the minute the market overheated. Unfortunately, in their quest to prevent Wall Street banks and rogue mortgage lenders from taking responsibility, many Republicans have created an alternate reality in which anything else — even something as disconnected as fuel prices — caused the crisis, even if those claims have no basis in reality.
This post contains spoilers through the February 5 episode of Luck.
This post contains spoilers through the January 29 episode of Luck.
One of the nice thing about being at Sundance is that the festival is a break from watching movies about people who are ostensibly like me: young, white, urban professionals. That said, when I did see a movie about those kinds of people, specifically, Save the Date, it was a pleasure to spend time with a romantic comedy that, with one significant exception, felt vastly more emotionally true and specific than the kinds of relationship stories Hollywood seems convinced women like me want to spend the money we’re not already laying down for shoes to go see.
It says a lot about Work It that the way the show dealt with cross-dressing was so misguided that I didn’t even get around to writing an extremely angry post about the show’s poisonous sexism before it was cancelled due to faith-in-humanity reaffirming low ratings. But every silver lining has its cloud, which in this case were the strong initial ratings for Rob. Whether the latter continues to hold those numbers is a very interesting question, but I think the fate of each of these critically-savaged shows says something about the stories Americans want to here, and what compromises they’re willing to make to them.
Despite its silly name, Don’t Trust the B- In Apartment 23 was one of my favorite pilots that I saw this fall. I like Krysten Ritter a whole bunch, and her odd-couple roommate schtick with Dreema Walker felt plausible and funny. Ritter plays Chloe, a manipulative New Yorker who takes roommates only to drive them nuts and keep their deposits, who ends up with more than she bargained for in June, a wholesome Midwesterner who came to New York only to find the job she planned to take wiped out by Bernie Madoff’s fraud. Chloe also maintains a nicely platonic friendship with James Van Der Beek, playing a slightly-altered version of himself a la Larry David, something that, as Ritter said today, is all too rare on television in particular and pop culture in general. I was intrigued by the Madoff references, and other riffs on things like June and Chloe walking out without paying a bar tab and blaming it on times being tough, so I asked creator Nahnatchka Khan what role the recession plays in the show.
Thank goodness ABC’s humiliating Work It premiered to ratings worse than the now-canceled show it replaced. It still doesn’t restore my faith in humanity that the so-called comedy beat Parenthood, but I’m narrowly relieved that it’s not an instant hit. Work It made me sadder than anything I’ve watched in a long time, sad enough that it’s proved difficult for me to muster up the same level of outrage as 