The alternative Right was way out in front spotting "The Diversity Depression"--that is, the role that affirmative-action lending played in the housing bubble and resulting financial crisis. (The term was coined at Takimag in June, 2008, and developed mostly at VDARE). The idea has since been integrated into a number of post-crash books. Even Walter Russell Mead, the establishmentarian's establishmentarian, has caught on. And he suggests that the GOP run on "The Diversity Depression" in 2012 as a proxy for the need to end the evils of affirmative action and the Nanny State. (That is, Mead advises Republicans to dedicate themselves to matters that might improve the lives of the White people who vote for them. Fancy that?)
If the GOP can make this narrative mainstream, and put this picture into the heads of voters nationwide, the Democrats are toast. The party will have to reinvent itself (or as often happens in American politics, be rescued by equally stupid Republican missteps) before it can flourish.
If Morgenstern and Rosner are to be believed, the American dream didn’t die of old age; it was murdered and most of the fingerprints on the corpse come from Democratic insiders. Democratic power brokers stoked the housing bubble and turned a blind eye to the increasingly rampant corruption and incompetence at Fannie Mae and the associated predatory lenders who sheltered under its umbrella; core Democratic ideas may well be at fault.
This is catnip to Republicans, arsenic to Dems. If Morgenson and Rosner are right, there is someone the American people can blame for our current economic woes and it is exactly the cast of characters that a lot of Americans love to hate. Big government, affirmative action and influence peddling among Democratic insiders came within inches of smashing the US economy.
Do you think they might do it?
Nah, better to make noises about invading more Middle Eastern countries!