Malpass Didn't Just Wreck Bear Stearns
It was probably not coincidental that he was chief economist at Bear Stearns, a company whose fate is all too well known. The conclusions of his analysis, that there was nothing wrong with the housing boom, of course prepared the way for the decisions of Bear Stearns management and investment strategies to invest heavily in the U.S. housing market. This later led to the collapse of that company.
Moreover, as Malpass went out of his way to spread this message in interviews and op-ed columns and as this in turn led other pundits to spread that message, and as some probably acted on that analysis, this also contributed to lowering actual savings (although to be fair, his role in that respect was far more modest than his role in wrecking Bear Stearns).