During the push to privatize Social Security, the idea's foes were accused of not trusting the American people to manage their own money. The naysayers prevailed, and aren't we glad.
How interesting that the buildup to the mortgage meltdown employed many of the same sales tactics as the Social Security privatization scheme. Resentment, fear, flattery and hype — plus scant details on fees and other costs — all went into the pitch.
When a former Fed official called for rules to tame the subprime-mortgage business, the peddlers howled. This was an attack on low-income people, particularly those of color, they said. Without lax lending practices, fewer minorities would have enjoyed the blessings of homeownership.
It turns out that many never really "owned" much if any of their homes — they just held a lot of expensive debt that let them put their names on a deed. People losing their houses may find themselves poorer than before they started.
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