I’m not a big David Brooks fan, but he takes the political class to task much more than he’s usually willing to in today’s column.

Morgenson and Rosner write with barely suppressed rage, as if great crimes are being committed. But there are no crimes. This is how Washington works. Only two of the characters in this tale come off as egregiously immoral. Johnson made $100 million while supposedly helping the poor. Representative Barney Frank, whose partner at the time worked for Fannie, was arrogantly dismissive when anybody raised doubts about the stability of the whole arrangement.

Most of the people were simply doing what reputable figures do in service to a supposedly good cause. Johnson roped in some of the most respected establishment names: Bill Daley, Tom Donilan, Joseph Stiglitz, Dianne Feinstein, Kit Bond, Franklin Raines, Larry Summers, Robert Zoellick, Ken Starr and so on.

Of course, it all came undone. Underneath, Fannie was a cancer that helped spread risky behavior and low standards across the housing industry. We all know what happened next.

The scandal has sent the message that the leadership class is fundamentally self-dealing. Leaders on the center-right and center-left are always trying to create public-private partnerships to spark socially productive activity. But the biggest public-private partnership to date led to shameless self-enrichment and disastrous results.

It has sent the message that we have hit the moment of demosclerosis. Washington is home to a vertiginous tangle of industry associations, activist groups, think tanks and communications shops. These forces have overwhelmed the government that was originally conceived by the founders.

The reckoning started last November, but the real one is yet to come.

You don’t say. Unexpectedly! too…

As Glenn often says, a repeat of Carter is a best-case scenario.

[Update a few minutes later]

Really? You don’t say. Stagflation creates a dangerous position for the economy.

…or Herbert Hoover?

As President Obama struggles, again, to gain control of the economic conversation and relaunch his administration’s economic policy (how many times has this administration announced its determination to focus on job creation?) the similarities between these two idealistic and patriotic men begin to emerge. In both cases we have a President who thought that his mission was to remake the world, but who gradually discovered that the tools in his toolkit were no match for the problems he faced. With great intelligence and serious goodwill, both men set about to address the most important issues facing the country and the world — only to find that their chosen remedies failed one by one.

I am not convinced that the President’s political goose is cooked — yet. For one thing, luck can never be discounted. Recessions don’t last forever, anymore than booms do, and American capitalism is strong enough to stage a recovery in the face of poor policy. But luck aside, the President can still avoid the great mistake that finally wrecked Hoover: the failure to learn.

President Hoover brought some convictions with him to office about how the economy worked, how government worked, and what his role as President should be. As the Depression deepened, he did the best he could within those limits, but nothing seems to have made him reconsider the mix of progressive ideas that he brought with him to the White House. As months of failure and disappointment grew into years, he doesn’t seem to have questioned those core ideas or to think about ways in which the economic emergency might require steps that in normal times would not be taken. He not only failed to end the Depression; he failed to give people a sense that he understood what was happening. Over-optimistic forecasts issued in part to build confidence came back to haunt him. To the public he seemed fuddled and doctrinaire, endlessly recycling stale platitudes in the face of radically new economic problems.

One of the myths of the rewritten history by the left is that Hoover was a conservative, with laissez-faire economic policies (and thus by implication a hero of modern Republicans, particularly Reagan Republicans), but he was an economically ignorant progressive of his time, albeit a good engineer and a good man. The comparison seems quite apt to me (except I’m sure that Hoover was nowhere near as arrogant, narcissistic and self absorbed as the president).

Is extreme bank regulation a key to the lousy economy? The fact that there’s a ton of uncertainty about Frank-Dodd doesn’t help, either. And of course, Sarbanes-Oxley has been a disaster for start ups.