The media needs a narrative of villains, victims, and heroes, Arnold Kling notes:
That is why the dominant narrative has greedy executives and right-wing deregulators (villains), even though capital requirements were what drove securitization. That is why the dominant narrative has homeowners burdened by mortgages, when in fact more than 15 percent of mortgage loans in recent years were for non-owner-occupied homes. Moreover, even the owner-occupants were speculators, in the sense that they put almost nothing down. Trying to paint as a victim someone who put nothing down and got a big house to live in as a result is really stretching things. Finally, the media wants Henry Paulson and Ben Bernanke to be heroes. In fact, they are increasing the discrepancy between concentrated power and dispersed knowledge.
He concludes that government-sponsored, upside-only capitalism is the only game in town for the foreseeable future.