Teaching Economics to the Post on JP Morgan

The Washington Post continues to be very upset that the government is spending time going after Wall Street banks. Its editorial today complained again about the Justice Department's lawsuit against JP Morgan.

Among other things, the piece complained that the homeowners who benefit from write-downs of mortgages ($4 billion of the $13 billion settlement) were not the victims of the bank's misrepresentations of mortgages sold in mortgage backed securities. It also argued that these write-downs...