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Old 03-12-2009, 12:25 PM
 
Location: North America
19,734 posts, read 13,550,678 times
Reputation: 8409

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March 12, 2009
David Fiderer


How Dumb Does Alan Greenspan Think We Are? Very

"Don't blame me," argues Alan Greenspan in a piece of historical revisionism that would have embarrassed Kurt Waldheim. Greenspan offered up a Panglossian analysis in today's Wall Street Journal that goes something like this:

The rise in housing prices was tied to the decline in the rates for long-term, fixed-rate mortgages. Historically there has been a strong historic correlation between the fed-funds rate and rates for long-term, fixed-rate mortgages (FRMs). "Between 2002 and 2005, however, the correlation diminished to insignificance," writes Greenspan. There was no correlation, ergo the Federal Reserve did not inflate the housing bubble.

Here's the truth.
[Click Link Below for complete article]
http://www.huffingtonpost.com/david-fiderer/how-dumb-does-alan-greens_b_174122.html[/SIZE]
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Old 03-12-2009, 02:01 PM
 
Location: Home, Home on the Front Range
24,945 posts, read 18,073,619 times
Reputation: 14167
Thanks for posting this.
So basically, what Mr. Greenspan is saying is that it was better to have the bubble and basically let everyone 'eat cake' than to do the responsible thing, raise interest rates and deflate the bubble.
The man is insane.
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Old 03-12-2009, 02:38 PM
 
Location: North America
19,734 posts, read 13,550,678 times
Reputation: 8409
Quote:
Originally Posted by TigerLily24 View Post
Thanks for posting this.
So basically, what Mr. Greenspan is saying is that it was better to have the bubble and basically let everyone 'eat cake' than to do the responsible thing, raise interest rates and deflate the bubble.
The man is insane.

Pretty much, or in complete denial.
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Old 03-12-2009, 02:45 PM
 
Location: OB
2,404 posts, read 3,660,965 times
Reputation: 879
Hahahahaha - you're citing the Huffington Post as a source. Any one of my former professors would fail me for such an incredible citation. That's like me quoting Rush as the truth. Hahahahaha.
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Old 03-12-2009, 02:54 PM
 
75,640 posts, read 35,272,561 times
Reputation: 10784
A more realistic look at what contributed to the bubble, including a look at tax law allowing for the deduction of home equity loan interest, and 'without recourse' home loans:
https://www.aei.org/publications/fil...pub_detail.asp
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Old 03-13-2009, 06:11 AM
 
Location: North America
19,734 posts, read 13,550,678 times
Reputation: 8409
Quote:
Originally Posted by mossomo View Post
Hahahahaha - you're citing the Huffington Post as a source. Any one of my former professors would fail me for such an incredible citation. That's like me quoting Rush as the truth. Hahahahaha.
hahahahahahahahahaha
OK laughing boy, come up with a better theory.
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Old 03-13-2009, 06:16 AM
 
28,265 posts, read 36,253,525 times
Reputation: 4194
So let me see if I got the translation right.

(R) is bad and destroyed your mama's crops.

(I) could be bad depending on if they agree with you or not.

(D) are semi gods sent to earth to fulfill the destiny of our supreme lord Obama.

My gibberish is a little off (learned it in the womb), help me out here.
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Old 03-13-2009, 06:17 AM
 
Location: North America
19,734 posts, read 13,550,678 times
Reputation: 8409
Quote:
Originally Posted by InformedConsent View Post
A more realistic look at what contributed to the bubble, including a look at tax law allowing for the deduction of home equity loan interest, and 'without recourse' home loans:
https://www.aei.org/publications/fil...pub_detail.asp

Thanks for the link. Unless I missed it, no mention is made of Gramm-Leach-Bliley which allowed the banks to buy the higher risk mortgage backed securities.

All-in-all the perfect storm.
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Old 03-13-2009, 06:18 AM
 
Location: North America
19,734 posts, read 13,550,678 times
Reputation: 8409
Quote:
Originally Posted by BigJon3475 View Post
So let me see if I got the translation right.

(R) is bad and destroyed your mama's crops.

(I) could be bad depending on if they agree with you or not.

(D) are semi gods sent to earth to fulfill the destiny of our supreme lord Obama.

My gibberish is a little off (learned it in the womb), help me out here.

Didn't say that, read it again.
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Old 03-13-2009, 06:32 AM
 
75,640 posts, read 35,272,561 times
Reputation: 10784
Quote:
Originally Posted by carterstamp View Post
Thanks for the link. Unless I missed it, no mention is made of Gramm-Leach-Bliley which allowed the banks to buy the higher risk mortgage backed securities.
You're missing the point - higher risk mortgage backed securities would not have existed to the extent they now do if public policy hadn't forced the lowering of lending standards.
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