Greenspan’s masterful timing

how can Greenspan be talking about how we are on the edge of recession until the housing market gets better.
It was on his watch that the housing bubble happened. How can he not bear some of the blame for the current economic problems.

there is a real danger in letting former government officials to work for private companies. did anybody see “sicko”?

former congressmen working for healthcare companies after their terms. where it seems policies were made to benefit healthcare companies they now work for.

could Greenspan have done the same?

Basically the problem is two fold:

1) Availability of cheap money ;
2) Homebuilders desire to build more.

With the availability of cheap financing, people made the decision (not Greenspan) to take out those mortgages. The homebuilders just kept building them and building them. Their spec homes rose to alltime levels, and now that the customers (the ones who used that cheap money and the sub-prime market) have dried up, inventories are at a peak and no sales are in sight.

Greenspan in both cases is not to blame. Its the lenders who pushed that sub-prime product out , and profited from it because of lax(loose) lending criteria. The builders did what they normally do - build more.

I can’t see why someone would think that Greenspan is the person who contributed to this as people, not one sole individual, make choices that affect markets.

What kind of idiots would blame Greenspan - or interest rates - for a problem caused by greed and the institutionalized corruption of the mega-CEOs making outrageous bets with other people’s money?

I agree that Greenspan cannot be solely responsible for the home loan fiasco. And, I really haven’t read enough to even know who sets the limits in this arena.

However, I do know that American business has become more and more shortsighted (response to globalization?) in its efforts to make a buck. How could the people with large stakes in the market, such as Citigroup, and the Bush Administration/Congress, not be able to see that these conditions were likely to sink millions of consumers? Wither the consumer goes, the economy must follow, right? And don’t cry class divisiveness–that street runs both ways. Who was the “we” willing to shear the “them” buying these mortgages? Instead, all of US are on the rails toward a likely recession.

http://www.rationalpsychic.wordpress.com

Greenspan is the initiator of cheap, short-term solutions to keep economic growth going - now we’re paying for it. The only solution is competitiveness and productivity, not quick hit, “easy outs”

http://americancompetitive.blogspot.com/

Greenspan caused the real estate bubble and the Internet bubble and has been nothing short of a disaster. Of course Paulson downplays Greenspan as the cause of the disaster. He has hired him. Some people will do anything to make money.

If you want to read what is really going on check out “America’s Financial Apocalypse: How to Profit from the Next Great Depression.” It already predicted that the real estate meltdown would damage the banks.

It is always the president’s fault or the Fed or Greenspan this time. The borrower and lender need to do a better job of foreseeing their future payments in years ahead especially with ARM lending. Then there’s the big payment of county taxes due every January. If those school, city and county taxes are not escrowed into the monthly mortgage payment, it creates an unpleasant, overwhelming and financially devastating surprise right after Christmas spending.

Everyone should read Ravi Batra’s book Greenspan Fraud. The book was published prior to the end of the nineties and spelled out the antics of Greenspan through out his career.

Alan Greenspan did nothing but implement what he believed to be effective monetary policy during his tenure. Not to mention that every move he made was the result of a majority vote of all the Federal Reserve directors - nothing he implemented was unilateral action. And institutions ignored the fundamental risks associated with the “bundles” of loans that they purchased - and they paid the price. Blame it on one man? Hardly.

It’s a sad commentary on our times that we bestow so much trust on individuals like Mr. Greenspan to steer us right and they get it so wrong. Wouldn’t it be great if he would just admit “Look - I got it wrong. I’m sorry.”

So Greenspan held a gun to all those people’s heads and told them to sign up for stupid loans? People are not accountable for their own actions? If I sign up for a loan and it’s a bad deal, that is Greenspan’s problem? Wow America, not impressed. Don’t believe everything you read, but DO read your loan docs.

Greenspan is a fool, and an old fool at that. Amazing that anybody would hire him.

WOW !!!
Very clever! Betting against his own approach on the subprime….and getting $$$
Bravo Maestro! You should be proud of
yourself.
HE should be investigated.

A short while ago Greenspan stated he “Did not get” the sub prime mortgage meltdown.I guess he gets it now,when he can see a vast personal profit in the debacle.Yes just like Goldman Sachs,for some,majority misery will always be a profit opportunity