Here is Lawrence White, explaining why the Greed Hypothesis is so preposterous:
On greed, let me repeat: If unusually many airplanes crash during a given week, do you blame gravity? No. Greed, like gravity, is a constant. It can’t explain why the number of crashes is higher than usual. And let me add: This isn’t a morality play. What we’re seeing are the consequences of monetary-policy distortions of interest rates and regulatory distortions of incentives, amplified in some degree by private imprudence, not the consequences of blackheartedness.In fact, if we look at the causes of this mess, we find that it is not greed at all that caused it, but compassion. Not compassion on an individual level, not the compassion of the Good Samaritan--not the compassion of the person who loves his neighbor, but the compassion of the kind of person who loves humanity.
We're in this mess because policymakers wanted to make mortgages available to people who couldn't afford them. But now compassion has given way to blame shifting, and they are blaming the people they pressured to do this as being greedy.
Beware of compassionate government.