Hardly a day goes by during this housing crisis that the media does not report on families in foreclosure proceedings, or in arrears in repayment on mortgages that had close to zero down payment requirements and low “teaser “ interest rates. The many excuses offered by some home owners for their plight, and also eagerly by the authors of these human interest stories, is that the borrowers did not understand that these introductory interest rates might rise a lot after a few years, or that they would have negative equity in their homes if housing prices stopped rising and began to fall. An obvious alternative explanation for their behavior is that they gambled that the good times would continue indefinitely.

This type of response to failed decisions is not unique to the present housing crisis, but is part of a strong trend toward shifting responsibility to others. Women who sign a pre-nuptial agreement specifying the amount of their husband's pre-marital wealth that would be theirs in the event of divorce often try to have the agreements overthrown in divorce litigation. They claim that they did not understand what the agreements meant, or that their husbands took advantage of them in other ways to get them to sign the agreements. Usually they signed simply because that was the only way they could marry the men they very much wanted to marry, perhaps in part because the men were wealthy.

Many criminals who confess to or are convicted of serious crimes try to have the courts excuse or mitigate their behavior. They allege that they had uncaring or abusive parents, or that fathers, relatives, stepfathers, or other adults molested them as children. Abusive treatment is awful, but still the vast majority of children abused do become law-abiding and responsible adults. That is a major fact that courts should pay attention to.

Successful attempts to shift the responsibility for bad decisions toward others and to society more generally create a "moral hazard" in behavior. If individuals are not held accountable for decisions and actions that harm themselves or others, they have less incentive to act responsibly in the first place since they will escape some or all of the bad consequences of their actions. It does not matter greatly whether this moral hazard resulted from the shifting of blame for unsuccessful actions to the "small print" in a contract, to an abused childhood, to a mental state, or to many other efforts to shift responsibility away from oneself.

http://www.becker-posner-blog.com/

The subprime mortgage collapse is another tale of unintended consequences.

The crisis has its roots in the Community Reinvestment Act of 1977, a Carter-era law that purported to prevent “redlining� - denying mortgages to black borrowers - by pressuring banks to make home loans in “low- and moderate-income neighborhoods." Under the act, banks were to be graded on their attentiveness to the “credit needs� of “predominantly minority neighborhoods." The higher a bank's rating, the more likely that regulators would say yes when the bank sought to open a new branch or undertake a merger or acquisition.

But to earn high ratings, banks were forced to make increasingly risky loans to borrowers who wouldn't qualify for a mortgage under normal standards of creditworthiness. The Community Reinvestment Act, made even more stringent during the Clinton administration, trapped lenders in a Catch-22.

"If they comply," wrote Loyola College economist Thomas DiLorenzo, “they know they will have to suffer from more loan defaults. If they don't comply, they face financial penalties . . . which can cost a large corporation like Bank of America billions of dollars."

Banks nationwide thus ended up making more and more subprime loans and agreeing to dangerously lax underwriting standards - no down payment, no verification of income, interest-only payment plans, weak credit history. If they tried to compensate for the higher risks they were taking by charging higher interest rates, they were accused of unfairly steering borrowers into “predatory� loans they couldn't afford.

Trapped in a no-win situation entirely of the government's making, lenders could only hope that home prices would continue to rise, staving off the inevitable collapse. But once the housing bubble burst, there was no escape. Mortgage lenders have been bankrupted, thousands of subprime homeowners have been foreclosed on, and countless would-be borrowers can no longer get credit. The financial fallout has hurt investors around the world. And all of it thanks to the government, which was sure it understood the credit industry better than the free market did, and confidently created the conditions that made disaster unavoidable.

"No man's life, liberty, or property is safe," warned Mark Twain, “while Congress is in session." Mark Twain was a humorist, but that was no joke.

http://patriotpost.us/opinion/entry.asp?entry_id=36700

“Buckley was a one-man refutation of Hollywood’s idea of a conservative. He was rising in the 1950s and early ‘60s, and Hollywood’s idea of a conservative was still Mr. Potter, the nasty old man of ‘It’s a Wonderful Life,’ who would make a world of grubby Pottersvilles if he could, who cared only about money and the joy of bullying idealists. Bill Buckley’s persona, as the first famous conservative of the modern media age, said no to all that. Conservatives are brilliant, capacious, full of delight at the world and full of mischief, too. That’s what he was. He upended old clichés... I share here a fear. It is not that the conservative movement is ending, that Bill’s death is the period on a long chapter... Conservatism will endure if it is rooted in truth, and in the truths of life. It is. It is rather that with the loss of Bill Buckley we are, as a nation, losing not only a great man...[W]e are losing his kind—people who were deeply, broadly educated in great universities when they taught deeply and broadly, who held deep views of life and the world and art and all the things that make life more delicious and more meaningful. We have work to do as a culture in bringing up future generations that are so well rounded, so full and so inspiring. Bill Buckley lived a great American life. His heroism was very American—the individualist at work in the world, the defender of great creeds and great beliefs going forth with spirit, style and joy. May we not lose his kind. For now, ‘Good night, sweet prince, and flights of angels take thee to thy rest’.� —Peggy Noonan

"When a man hangs up his byline to write for a president, he gets more than a new job. He gets to see how the press and pundit corps look from the other side of the notepad.

And over three years in the West Wing, you see a few things. You see who's a straight shooter, and who's full of snark. You see who's smart, and whose outrageous behavior would have made its way to Drudge had it involved White House staffers instead of White House correspondents. Most of all, you see how conventional wisdom can keep otherwise talented reporters and commentators on the same stale storyline long after the facts on the ground have changed."

http://online.wsj.com/article/SB120338469685475857.html?mod=opinion_main_commentaries

"Michelle Obama today said that “for the first time in my adult lifetime, I am really proud of my country. And not just because Barack has done well, but because I think people are hungry for change. I have been desperate to see our country moving in that direction.�

Really proud of her country for the first time? Michelle Obama is 44 years old. She has been an adult since 1982. Can it really be there has not been a moment during that time when she felt proud of her country? Forget matters like the victory in the Cold War; how about only things that have made liberals proud — all the accomplishments of inclusion? How about the passage of the Civil Rights Act of 1991? Or Ruth Bader Ginsburg’s elevation to the Supreme Court? Or Carol Moseley Braun’s election to the Senate in 1998? How about the merely humanitarian, like this country’s startling generosity to the victims of the tsunami? I’m sure commenters can think of hundreds more landmarks of this sort. Didn’t she even get a twinge from, say, the Olympics?"

http://www.commentarymagazine.com/blogs/index.php/jpodhoretz/2541

"What in the world are advisers to both Senators Obama and Clinton doing in Syria in the middle of a presidential campaign — and why are the two campaigns so unforthcoming about the details of the visits? The same week that a terrorist mastermind harbored by the Baathist regime in Damascus was assassinated by a car bomb, both one of Mr. Obama's foreign policy counselors, Zbigniew Brzezinski, a long-time critic of Israel, and one of Mrs. Clinton's national finance chairs, Hassan Nemazee, were meeting with President Assad."

"Where is the sense of reality about who President Assad is and what his regime is all about? To suggest, as the Syrians report Mr. Brzezinski said, that they share some kind of common interest in respect of "stability" is disingenuous. Mugniyah, whom the Syrians had been harboring, has been among the FBI's most-wanted terrorists since 1983, when he authorized the attack on the American Marine barracks in Beirut. Mr. Assad runs a police state. Dictatorships can only thrive if the population is in constant terror and convinced the state itself is all knowing."

http://www.nysun.com/pf.php?id=71373&v=0419803021

The ink is still moist on Capitol Hill's latest energy bill and, as if on cue, a scientific avalanche is demolishing its assumptions. To wit, trendy climate-change policies like ethanol and other biofuels are actually worse for the environment than fossil fuels. Then again, Washington's energy neuroses are more political than practical, so it's easy for the Solons and greens to ignore what would usually be called evidence.

The rebukes arrive via two new studies in Science, a peer-reviewed journal not known for right-wing proclivities. The first, by ecologists at Princeton and the Woods Hole Research Center, reviews the environmental consequences of increased biofuel consumption, which had never been examined comprehensively. Of course, that didn't stop Congress and the Bush Administration from jacking up the U.S. mandate to 36 billion gallons by 2022, a fivefold increase from a mere two years ago. Such policies are supposedly justified because corn-based ethanol and other "alternatives" result in (very modest) reductions in greenhouse-gas emissions when mixed with gasoline.

The researchers break new ground by exposing a kind of mega-accounting error: Prior studies had never credited the carbon-dioxide emissions that arise when virgin forests, grasslands and the like are cleared to grow biofuel feedstocks. About 2.7 times more carbon is stored in terrestrial soils and plant material than in the atmosphere, and this carbon is released when these areas are cleared (often by burning) and the soil is tilled. Compounding problems is the loss of "carbon sinks" that absorb atmospheric CO2 in the bargain. Previous projections had also ignored the second-order effects of transferring normal farm land to biofuels, which exerts world-wide pressure on land use.

Read on at:

http://online.wsj.com/article/SB120286874755264143.html?mod=opinion_main_review_and_outlooks

The pseudonymous Ibn Warraq writing in City Journal:

The great ideas of the West -- rationalism, self-criticism, the disinterested search for truth, the separation of church and state, the rule of law and equality under the law, freedom of thought and expression, human rights, and liberal democracy -- are superior to any others devised by humankind. It was the West that took steps to abolish slavery; the calls for abolition did not resonate even in Africa, where rival tribes sold black prisoners into slavery. The West has secured freedoms for women and racial and other minorities to an extent unimaginable 60 years ago. The West recognizes and defends the rights of the individual: we are free to think what we want, to read what we want, to practice our religion, to live lives of our choosing.

In short, the glory of the West, as philosopher Roger Scruton puts it, is that life here is an open book. Under Islam, the book is closed. . . .

http://online.wsj.com/article/SB120287316895464563.html?mod=opinion_main_commentaries

Hybrids like the Toyota Prius are selling like mad, but they are a stop-gap measure at best and the "misinformed craze" for them may delay sustainable technologies like hydrogen fuel cell vehicles, French researchers say.

Gas-electric vehicles are not environmentally sustainable, yet automakers like Toyota and General Motors are pouring tens of millions of dollars into them in no small part because consumers are convinced they are, Jean-Jacques Chanaron and Julius Teske write in "Hybrid Vehicles: A Temporary Step."

"There is a general convergence of strategies toward promoting hybrid vehicles as the mid-term solution to very low-emissions and high-mileage vehicles," the researchers say. "... Such a convergence is based more on customer perception triggered by very clever marketing and communications campaigns than on pure rational scientific arguments and may result in the need for any manufacturer operating in the USA to have a hybrid electric vehicle in its model range in order to survive."

http://blog.wired.com/cars/2008/02/midinformed-cra.html

"When all relevant factors are accounted for, biofuels produce more greenhouse gas emissions than fossil fuels.

So conclude two studies published yesterday in Science, adding to a growing body of research suggesting that crop-based fuels, once hailed as a clean answer to oil, are not a magic green bullet."

http://blog.wired.com/wiredscience/2008/02/studies-say-bio.html