The other night at dinner, our seminar speaker started to explain to us about how the Community Reinvestment Act caused the subprime crisis. There was a new twist in the story, he claimed there was a flawed study (which he surely made up or at least misrepresented) that had showed that whether or not people made their mortgage payments, and, as a result, the courts/federal government (he didn’t explain the mechanism) forced banks to lend to anyone who wanted it. He had all of this on very good authority from his father-in-law at Morgan Stanley. May FSM strike me dead if I am not relating his story accurately. I thought of that when I saw this from Atrios:
5 years from now it will probably be a “fact” that ACORN and the Community Reinvestment Act caused the housing bubble.
And I thought of that again when I saw (on Fallows) that the Washington Post still hasn’t amended its Nobel for Neda piece to note that Nobel prizes are not awarded posthumously. And again when I saw this bizarre explanation of it all from Howie Kurtz:
Fairfax County, Va.: Hi Howard, This Sunday, I read the editorials in The Post and The New York Times about the surprise Peace Prize. I liked the NYT editorial (which was pro), but like most of us, including Obama, I could certainly have handled an editorial that was anti this choice.
When I read The Washington Post editorial, I felt so sad for what this paper has become. Their whole idea was that the prize should have gone to Neda, the woman who was murdered by the Iranian police. Nobel Peace Prizes can’t be given posthumously. It’s a basic, easy factcheck. There are other fact problems, too (the protests hadn’t happened by the nomination date, Neda may not have been a protester).
So the idea that the committee made a careless or inappropriate choice is refuted by a slapdash editorial “choice” that nobody bothered to check? It just screamed out to me “we laid off almost all the copy editors.” I feel so sad for The Post I grew up with. It’s great to have an opinion. It’s bad to look dumb.
washingtonpost.com: Post Editorial: Our Laureate: Neda of Iran (Post, Oct. 10) andTimes Editorial: The Peace Prize (The New York Times, Oct. 9)
Howard Kurtz: I take your point about no posthumous awards, though by that standard Martin Luther King couldn’t have won after being assassinated (yes, I know he won the prize earlier). My reading of the piece was that Neda was being used more as a symbol (though the rule should have been mentioned). But it’s an editorial. It is by definition opinion. Of course some readers are going to disagree.
It’s not “by that reasoning”, it’s a rule the Nobel Prize committee has! How hard is it to understand that?
Were things always like this? Did newspapers always fill their editorial pages with factual inaccuracies they refused to correct? Were criticisms of the inaccuracies always defended with non sequiturs about other events? Was it always common for ostensibly reasonable, intelligent people to go around repeating stories that are not only not true but couldn’t possibly be true?
Update. I see that Mediactive wrote about Kurtz’s strange answer as well. There are some good points there.