Someday I will write about his description of the sequence of collectivist policy approaches he calls The Blue Models, their failures and their forced abandonments, but here I want to point you quickly at his review of a new book on the financial crisis that lays it at the feet of Democrat politicians, and his commentary on that issue's potential political impact should Republicans wake up to it and wield it correctly. He says
- Politically, this story is a killer app for the GOP. It demonizes Dems, lends itself to attack ads, divides Democrats between their Wall Street and union bases, and combines GOP hate figures in ways calculated to unify the GOP and heighten the intensity of the faithful.
- The story can also be a devastating wedge issue. The Democratic Party today is a fragile coalition of elite liberals, traditionally Democratic ethnic blue collar whites, African Americans and Hispanics. The Fannie Mae story is essentially a story of how liberal Wall Streeters raped every one else and how the organized leadership of the other groups colluded in the attack. Hammering this picture home will demoralize and divide the Democratic Party, reducing enthusiasm among minorities and pulling swing white ethnic votes toward the GOP.
Fanniegate is a genuine triple threat issue for the right: a Hayekian case against the mandates of corporatism, a blueprint for a devastating attack on social democratic liberalism itself, and an electoral albatross around the necks of the Democrat establishment.
