Comments on: Greenspan tries to play the ingenue

By: Fielding Mellish

Fielding Mellish — Mon, 27 Oct 2008 13:52:03 +0000

You can't really blame Greenspan for not recognizing the bubble (his PhD dissertation notwithstanding). After all, he was only another person who simply thought “this time it's different”. It's happened before and it will happen again – and again – and again…

By: Don

Don — Mon, 27 Oct 2008 13:46:01 +0000

Exactly!!!!!!!!! That's the only thing they could come up with to keep the economy going. The plan was to mortgage ourselves to death and let someone else clean up the mess.

BTW, Morgan….so now we're going to bailout INSURANCE COMPANIES????? I'm almost ready to vote for Bob Barr.

By: Paisano1

Paisano1 — Sat, 25 Oct 2008 02:09:36 +0000

They all knew what they were doing...

Goldman Sachs, JPMorgan and the other Kabal members wanted Greenspan to keep rates low to inflate our way out of the dot-com bubble. http://tinyurl.com/6rof6v

By: Aaron Krowne

Aaron Krowne — Fri, 24 Oct 2008 22:09:16 +0000

Let's see...

1. Greenspan's PhD dissertation was ABOUT HOUSING BUBBLES (most notably, home equity extraction, and its effect on the economy). There goes any pretense to claim he couldn't "recognize the bubble". Now consider...

2. He declined to utilize authority granted the Fed in the mid-90s to regulate subprime, despite warnings from Fed Governor Gramlich.

3. He recommended ARMs in 2004, specifically over fixed mortgages, while rates were at all-time lows! He all but jeered at people who were stodgy enough to take on fixed mortgages (which, in fact, turns out to have been by far the smartest and most prudent course of action).

---

There's more... the Fed, far from being a passive observer, enshrined the big 3 ratings agencies with "official" status. They could have exerted pressure. They didn't.

The Fed was getting the result it wanted.

And now it's doing what it always planned to do, and always has done -- shift the blame to externalities.

By: Alan Greenspan, ingenue « Collateral Damage

Alan Greenspan, ingenue « Collateral Damage — Fri, 24 Oct 2008 19:29:12 +0000

[...] October 24, 2008 · No Comments Another one from BlownMortgage: Alan Greenspan attempted to mimic Michael ?Heckuva Job, Brownie? Brown during his testimony befo… [...]