In the last two decades in Mediterranean Europe, and especially in Spain, a new social group has emerged, called jovenes (youngsters). Members of this group exhibit several specific characteristics. First, jovenes are usually male, aged 25–35, although some members are in their 40s. Second, they are in a perpetual state between graduation and their first job. Third, they usually live with their parents to save money, allowing them to go out at least three times a week. Fourth, they occasionally work a part-time job — if only due to the pressure imposed by their parents. Last, and most important, they receive unemployment benefit credits and renew their membership on the “unemployment list” from time to time, so that the state subsidies don’t run out during their “temporary” hibernation.

Today, though, banks and thrifts are not the ones holding mortgages. The main holders now are Freddie, Fannie, and the Fed. This means that when interest rates rise, the taxpayers will lose automatically, without even having to bail out banks or thrifts.

Understand before judging – that’s perhaps the most basic duty of anyone who wishes to be taken seriously on any subject.

As I have said before, there is no coherent narrative that connects an analysis of the causes of the crisis to the financial reform legislation as written. Rather, the bill serves to deflect blame from government’s role in pursuing housing policy through dubious mortgage market intervention and from the mutual overconfidence of large financial institutions and their regulators.