The Narrative of the Financial Crisis
By Arnold Kling
In this essay, I write,
The dramatic structural changes that took place in the financial industry were not noticed by the general public, and received little coverage even in the financial press. However, it is a myth that financial regulators were unaware of these developments.
The reality is that the policy community observed and approved of the innovations that restructured the financial system.
Read the whole thing. It is adapted from a longer paper that will be released next week.